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home / news releases / BOKF - BOK Financial Corporation Reports Quarterly Earnings of $84 million or $1.29 Per Share in the First Quarter

BOKF - BOK Financial Corporation Reports Quarterly Earnings of $84 million or $1.29 Per Share in the First Quarter

BOK Financial Corporation

TULSA, OK / ACCESSWIRE / April 24, 2024 /

First quarter 2024 financial highlights1

  • Net income was $83.7 million or $1.29 per diluted share compared to $82.6 million or $1.26 per diluted share. Excluding the loss from repositioning of the available for sale securities portfolio and the additional FDIC special assessment expense, net income would have been $123.2 million or $1.91 per share for the first quarter of 2024.
  • Net interest revenue totaled $293.6 million, a decrease of $3.1 million. Net interest margin was 2.61% compared to 2.64%.
  • Fees and commissions revenue was $200.6 million, an increase of $3.8 million. Higher mortgage banking and fiduciary and asset management revenue was partially offset by lower brokerage and trading and transaction card revenue.
  • Operating expense decreased $43.7 million to $340.4 million, primarily due to a reduction in non-personnel expense resulting from the FDIC special assessment recognized in the fourth quarter of 2023. Personnel expense was relatively consistent with the prior quarter.
  • Period end loans grew by $268 million to $24.2 billion at March 31, 2024, mostly driven by growth in commercial loans, partially offset by a reduction in commercial real estate loans. Average outstanding loan balances were $23.9 billion, a $243 million increase.
  • Nonperforming assets totaled $122 million or 0.51% of outstanding loans and repossessed assets at March 31, 2024, compared to $148 million or 0.62% at December 31, 2023. Net charge-offs were $5.5 million or 0.09% of average loans on an annualized basis in the first quarter.
  • Period end deposits increased $1.4 billion to $35.4 billion while average deposits increased $1.3 billion to $35.0 billion. Average interest-bearing deposits increased $2.1 billion while average demand deposits declined by $747 million. The loan to deposit ratio was 68% at March 31, 2024 compared to 70% at December 31, 2023.
  • Tangible common equity ratio was 8.21% compared to 8.29% at December 31, 2023. Tier 1 capital ratio was 12.00%, Common equity Tier 1 capital ratio was 11.99%, and total capital ratio was 13.15%.

1 Comparisons are to prior quarter unless otherwise noted.

CEO Commentary

First quarter results were characterized by a stabilizing net interest margin, strong asset quality, continued strong operating revenue growth, and well-managed expenses. It is also another reflection of our long-term focus and efforts to create sustainable earnings. While many banks sold their VISA B shares at a considerable discount, we chose to retain the shares we received in 2008 and expect to receive full value in VISA's announced exchange offer. Given our perception of market spreads, we took an opportunity to reposition the securities portfolio in the first quarter in anticipation of a gain in the second quarter this year from monetizing our VISA B shares. The net result is expected to further improve our net interest margin and net interest revenue outlook in future periods. Commercial loans grew almost 9% annualized as we focus on growth to utilize our strong capital and liquidity levels as others retrench. Our credit metrics remain very strong and are a direct reflection of the focus we put on disciplined risk management. I am also exceptionally proud we were recognized as one of only 60 organizations to receive the 2024 Gallup Exceptional Workplace Award. This is independent validation of our culture of inspiration, ambition, collaboration, and tenacity.

Net Interest Revenue

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Change
% Change
Interest revenue
$
645,212
$
638,324
$
6,888
1.1
%
Interest expense
351,640
341,649
9,991
2.9
%
Net interest revenue
$
293,572
$
296,675
$
(3,103
)
(1.0
)%

Net interest margin
2.61
%
2.64
%
(0.03
)%
N/A

Average earning assets
$
44,846,886
$
44,327,237
$
519,649
1.2
%
Average trading securities
5,371,209
5,448,403
(77,194
)
(1.4
)%
Average investment securities
2,210,040
2,264,194
(54,154
)
(2.4
)%
Average available for sale securities
12,537,981
12,063,398
474,583
3.9
%
Average loans balance
23,948,567
23,705,108
243,459
1.0
%
Average interest-bearing deposits
26,394,475
24,297,327
2,097,148
8.6
%
Funds purchased and repurchase agreements
1,258,044
2,476,973
(1,218,929
)
(49.2
)%
Other borrowings
6,844,633
7,120,963
(276,330
)
(3.9
)%

Net interest revenue was $293.6 million for the first quarter of 2024 compared to $296.7 million for the prior quarter. Net interest margin was 2.61% compared to 2.64%, reflective of continued demand deposit migration and deposit repricing. For the first quarter of 2024, our core net interest margin excluding trading activities, a non-GAAP measure, was 2.97% compared to 3.03% in the prior quarter.

Average earning assets increased $520 million. Average loan balances increased $243 million, largely due to growth in commercial loans, partially offset by a reduction in commercial real estate loan balances. Average available for sale securities grew $475 million while average trading securities decreased $77 million. Average interest-bearing deposits increased $2.1 billion, primarily from interest-bearing transaction accounts. Funds purchased and repurchase agreements declined $1.2 billion while average other borrowings decreased $276 million.

The yield on average earning assets was 5.73%, up 9 basis points. The yield on the available for sale securities portfolio increased 21 basis points to 3.48% while the loan portfolio yield increased 4 basis points to 7.40%. The yield on trading securities grew 7 basis points to 5.12% and the yield on interest-bearing cash and cash equivalents decreased 34 basis points to 4.96%.

Funding costs were 4.08%, up 10 basis points. The cost of interest-bearing deposits increased 26 basis points to 3.69%. The cost of funds purchased and repurchase agreements decreased 74 basis points to 4.05% from the beneficial mix shift enabled by the growth of interest-bearing deposits. The benefit to net interest margin from assets funded by non-interest liabilities was 96 basis points, a decrease of 2 basis points.

Other Operating Revenue

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Change
% Change
Brokerage and trading revenue
$
59,179
$
60,896
$
(1,717
)
(2.8
)%
Transaction card revenue
25,493
28,847
(3,354
)
(11.6
)%
Fiduciary and asset management revenue
55,305
51,408
3,897
7.6
%
Deposit service charges and fees
28,685
27,770
915
3.3
%
Mortgage banking revenue
18,967
12,834
6,133
47.8
%
Other revenue
12,935
15,035
(2,100
)
(14.0
)%
Total fees and commissions
200,564
196,790
3,774
1.9
%
Other gains, net
4,269
40,452
(36,183
)
N/A
Gain (loss) on derivatives, net
(8,633
)
8,592
(17,225
)
N/A
Gain (loss) on fair value option securities, net
(305
)
1,031
(1,336
)
N/A
Change in fair value of mortgage servicing rights
10,977
(14,356
)
25,333
N/A
Loss on available for sale securities, net
(45,171
)
(27,626
)
(17,545
)
N/A
Total other operating revenue
$
161,701
$
204,883
$
(43,182
)
(21.1
)%

Fees and commissions revenue totaled $200.6 million for the first quarter of 2024, an increase of $3.8 million over the prior quarter.

Mortgage banking revenue increased $6.1 million. Mortgage production volume increased $47.6 million and realized margin on funded mortgage loans improved 244 basis points to 1.46%.

Fiduciary and asset management revenue increased $3.9 million to $55.3 million, primarily due to growth in trust business line fees resulting from movement in the equity markets.

Brokerage and trading revenue decreased $1.7 million to $59.2 million. Trading revenue grew $1.9 million to $37.5 million reflecting increased trading activity primarily in U.S. government agency residential mortgage-backed securities.

Insurance brokerage fees decreased $1.8 million in conjunction with the sale of our insurance brokerage and consulting business, BOK Financial Insurance ("BOKFI") in the fourth quarter. Customer hedging revenue decreased $1.3 million, largely as result of reduced energy customer hedging volumes.

Transaction card revenue decreased $3.4 million to $25.5 million, primarily due to seasonally elevated fourth quarter activity and one less day in the quarter.

Other revenue decreased $2.1 million, largely due to a reduction in fees earned on derivative counterparty margin.

Other gains, net decreased $36.2 million to $4.3 million. The fourth quarter of 2023 included a $31.0 million pre-tax gain, before related professional fees, on the sale of BOKFI.

Losses on available for sale securities were $45.2 million in the first quarter of 2024 as we repositioned the available for sale securities portfolio by selling approximately $783 million of lower-yielding debt securities. We expect the gain on conversion of our Visa B shares under the recently announced exchange offer by Visa, Inc. will offset the realized losses on the repositioning. The Visa Exchange Offer opened on April 8 and is scheduled to expire at end of day on May 3, 2024.

Operating Expenses

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Change
% Change
Personnel
$
202,653
$
203,022
$
(369
)
(0.2
)%
Business promotion
7,978
8,629
(651
)
(7.5
)%
Charitable contributions to BOKF Foundation
-
1,542
(1,542
)
(100.0
)%
Professional fees and services
12,010
16,288
(4,278
)
(26.3
)%
Net occupancy and equipment
30,293
30,355
(62
)
(0.2
)%
FDIC and other insurance
8,740
8,495
245
2.9
%
FDIC special assessment
6,454
43,773
(37,319
)
(85.3
)%
Data processing and communications
45,564
45,584
(20
)
-
%
Printing, postage and supplies
3,997
3,844
153
4.0
%
Amortization of intangible assets
3,003
3,543
(540
)
(15.2
)%
Mortgage banking costs
6,355
8,085
(1,730
)
(21.4
)%
Other expense
13,337
10,923
2,414
22.1
%
Total operating expense
$
340,384
$
384,083
$
(43,699
)
(11.4
)%

Total operating expense was $340.4 million for the first quarter of 2024, a decrease of $43.7 million compared to the fourth quarter of 2023.

Personnel expense was $202.7 million, consistent with the prior quarter. Higher seasonal employee benefits costs were offset by reduced incentive compensation expense while regular compensation remained flat compared to the prior quarter.

Non-personnel expense was $137.7 million, a decrease of $43.3 million. In the fourth quarter of 2023, we recognized $43.8 million of expense related to the FDIC special assessment. During the first quarter of 2024, we received notification from the FDIC that the previous assessed losses attributable to the protection of Silicon Valley Bank and Signature Bank uninsured depositors had increased, so an additional $6.5 million of estimated expense related to the special assessment was recognized.

Professional fees and services expense decreased $4.3 million. The previous quarter included $2.2 million in expenses related to the sale of BOKFI.

Other expense was up $2.4 million, primarily due to increased operational losses.

Loans

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Change
% Change
Commercial:
Healthcare
$
4,245,939
$
4,143,233
$
102,706
2.5
%
Services
3,529,421
3,576,223
(46,802
)
(1.3
)%
Energy
3,443,719
3,437,101
6,618
0.2
%
General business
3,913,788
3,647,212
266,576
7.3
%
Total commercial
15,132,867
14,803,769
329,098
2.2
%

Commercial Real Estate:
Multifamily
1,960,839
1,872,760
88,079
4.7
%
Industrial
1,343,970
1,475,165
(131,195
)
(8.9
)%
Office
901,105
909,442
(8,337
)
(0.9
)%
Retail
543,735
592,632
(48,897
)
(8.3
)%
Residential construction and land development
83,906
95,052
(11,146
)
(11.7
)%
Other real estate loans
403,122
392,596
10,526
2.7
%
Total commercial real estate
5,236,677
5,337,647
(100,970
)
(1.9
)%

Loans to individuals:
Residential mortgage
2,192,584
2,160,640
31,944
1.5
%
Residential mortgages guaranteed by U.S. government agencies
139,456
149,807
(10,351
)
(6.9
)%
Personal
1,470,976
1,453,105
17,871
1.2
%
Total loans to individuals
3,803,016
3,763,552
39,464
1.0
%

Total loans
$
24,172,560
$
23,904,968
$
267,592
1.1
%

Outstanding loans were $24.2 billion at March 31, 2024, growing $268 million over December 31, 2023, largely due to growth in commercial loans, partially offset by a reduction in commercial real estate loans. Unfunded loan commitments decreased $359 million compared to the fourth quarter of 2023.

Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $329 million over the prior quarter.

Healthcare sector loan balances increased $103 million, totaling $4.2 billion or 18% of total loans. Our healthcare sector loans primarily consist of $3.5 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally, we loan to borrowers with a portfolio of multiple facilities, which serves to help diversify risks specific to a single facility.

General business loans increased $267 million to $3.9 billion or 16% of total loans. General business loans include $2.4 billion of wholesale/retail loans and $1.5 billion of loans from other commercial industries.

Services sector loan balances decreased $47 million to $3.5 billion or 15% of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, educational services and specialty trade contractors.

Energy loan balances were largely unchanged compared to the prior quarter at $3.4 billion or 14% of total loans. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 70% of committed production loans are secured by properties primarily producing oil. The remaining 30% is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.3 billion at March 31, 2024, a $147 million decrease compared to December 31, 2023.

Commercial real estate loan balances decreased $101 million to $5.2 billion and represent 22% of total loans. Loans secured by industrial facilities decreased $131 million to $1.3 billion and loans secured by retail facilities decreased $49 million to $544 million. These decreases were partially offset by an $88 million increase in loans secured by multifamily properties. Unfunded commercial real estate loan commitments were $1.7 billion at March 31, 2024, a decrease of $147 million compared to December 31, 2023. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of capital.

Loans to individuals increased $39 million and represent 16% of total loans. Residential mortgage loans increased $22 million while personal loans increased $18 million.

Period End & Average Deposits

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Change
% Change
Period end deposits
Demand
$
8,414,056
$
9,196,493
$
(782,437
)
(8.5
)%
Interest-bearing transaction
22,748,185
20,964,101
1,784,084
8.5
%
Savings
854,397
847,085
7,312
0.9
%
Time
3,366,909
3,012,022
354,887
11.8
%
Total deposits
$
35,383,547
$
34,019,701
$
1,363,846
4.0
%

Average deposits
Demand
$
8,631,416
$
9,378,886
$
(747,470
)
(8.0
)%
Interest-bearing transaction
22,264,259
20,449,370
1,814,889
8.9
%
Savings
843,037
845,705
(2,668
)
(0.3
)%
Time
3,287,179
3,002,252
284,927
9.5
%
Total average deposits
$
35,025,891
$
33,676,213
$
1,349,678
4.0
%

Our funding sources, which primarily include deposits and wholesale borrowings, provide adequate liquidity to meet our needs. The loan to deposit ratio was 68% at March 31, 2024, compared to 70% at December 31, 2023, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.

Period end deposits totaled $35.4 billion at March 31, 2024, a $1.4 billion increase. Interest-bearing transaction account balances increased $1.8 billion while time deposits increased $355 million. Demand deposits decreased $782 million.

Average deposits were $35.0 billion at March 31, 2024, a $1.3 billion increase. Average interest-bearing transaction account balances increased $1.8 billion and average time deposits increased $285 million. Average demand deposit account balances decreased $747 million.

Average Commercial Banking deposits increased $237 million to $15.7 billion or 45% of total deposits. Our commercial deposit portfolio is highly diversified across industries and customers. The highest concentration by industry within our commercial deposit portfolio is with our energy customers representing 8% of our total deposits. Wealth Management deposits increased $1.2 billion to $9.2 billion or 26% of total deposits. Consumer Banking deposits were largely unchanged at $7.9 billion or 23% of total deposits.

Capital


Minimum Capital Requirement
Capital Conservation Buffer
Minimum Capital Requirement Including Capital Conservation Buffer
Mar. 31, 2024
Dec. 31, 2023
Common equity Tier 1
4.50
%
2.50
%
7.00
%
11.99
%
12.06
%
Tier 1 capital
6.00
%
2.50
%
8.50
%
12.00
%
12.07
%
Total capital
8.00
%
2.50
%
10.50
%
13.15
%
13.16
%
Tier 1 Leverage
4.00
%
N/A
4.00
%
9.42
%
9.45
%
Tangible common equity ratio1
8.21
%
8.29
%
Adjusted common tangible equity ratio1
7.92
%
8.02
%

Common stock repurchased (shares)
616,630
700,237
Average price per share repurchased
$
83.89
$
70.99

1 See Explanation and Reconciliation of Non-GAAP Measures following.

The company's common equity Tier 1 capital ratio was 11.99% at March 31, 2024. In addition, the company's Tier 1 capital ratio was 12.00%, total capital ratio was 13.15%, and leverage ratio was 9.42% at March 31, 2024. At the beginning of 2020, we elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period. This election added 3 basis points to the company's common equity tier 1 capital ratio at March 31, 2024. At December 31, 2023, the company's common equity Tier 1 capital ratio was 12.06%, Tier 1 capital ratio was 12.07%, total capital ratio was 13.16%, and leverage ratio was 9.45%.

The company's tangible common equity ratio, a non-GAAP measure, was 8.21% at March 31, 2024 and 8.29% at December 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.92%. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

The company repurchased 616,630 shares of common stock at an average price paid of $83.89 a share in the first quarter of 2024. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Nonperforming assets totaled $122 million or 0.51% of outstanding loans and repossessed assets at March 31, 2024, compared to $148 million or 0.62% at December 31, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $113 million or 0.47% of outstanding loans and repossessed assets at March 31, 2024, compared to $139 million or 0.58% at December 31, 2023.

Nonaccruing loans decreased $26 million compared to December 31, 2023. New nonaccruing loans identified in the first quarter totaled $24 million, offset by $34 million of loans that returned to accruing status, $8.6 million in payments received and $7.1 million of charge-offs. Nonaccruing healthcare loans decreased $32 million, partially offset by a $15 million increase in nonaccruing commercial real estate loans.

Net charge-offs were $5.5 million or 0.09% of average loans on an annualized basis in the first quarter. Charge-offs for the first quarter were primarily composed of a $3.2 million general business loan and a $1.3 million commercial real estate loan.

The provision for credit losses of $8.0 million in the first quarter of 2024 reflects continued loan growth and a stable economic forecast. The provision for credit losses was $6.0 million in the fourth quarter of 2023.

At March 31, 2024, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $329 million or 1.36% of outstanding loans and 298% of nonaccruing loans. At December 31, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $326 million or 1.36% of outstanding loans and 240% of nonaccruing loans.

Securities & Derivatives

The fair value of the available for sale securities portfolio totaled $12.7 billion at March 31, 2024, a $366 million increase compared to December 31, 2023. At March 31, 2024, the available for sale securities portfolio consisted primarily of $7.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2024, the available for sale securities portfolio had a net unrealized loss of $643 million compared to $617 million at December 31, 2023.

We hold an inventory of trading securities in support of sales to a variety of customers. At March 31, 2024, the trading securities portfolio totaled $5.4 billion compared to $5.2 billion at December 31, 2023.

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. This portfolio of fair value option securities decreased $866 thousand to $19.8 million at March 31, 2024.

Derivative contracts are carried at fair value. At March 31, 2024, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $463 million compared to $593 million at December 31, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $460 million at March 31, 2024 and $587 million at December 31, 2023.

The net benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million during the first quarter of 2024, including an $11.0 million increase in the fair value of mortgage servicing rights, a $9.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $155 thousand of related net interest expense.

First Quarter 2024 Segment Highlights

Commercial Banking
Consumer Banking
Wealth Management
(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2024
Dec. 31, 2023
Net interest revenue and fee revenue
$
295,751
$
328,816
$
138,356
$
144,471
$
158,813
$
161,515
Net loans charged-off
4,160
2,987
1,808
1,443
(15
)
10
Personnel expense
45,319
53,066
25,236
23,051
63,777
66,151
Non-personnel expense
24,776
28,833
28,211
32,028
35,758
30,124
Net income
153,250
171,084
53,804
53,695
34,165
62,690

Average loans
20,067,170
19,928,602
1,913,586
1,877,303
2,198,803
2,154,416
Average deposits
15,730,241
15,493,326
7,901,167
7,890,032
9,237,965
8,085,643
Assets under management or administration
-
-
-
-
105,530,903
104,736,999

Commercial Banking contributed $153.3 million to net income in the first quarter of 2024, a decrease of $17.8 million compared to the fourth quarter of 2023. Combined net interest revenue and fee revenue decreased $33.1 million. Net interest revenue declined due to a shift in deposit balances from demand to interest-bearing transaction accounts along with decreased spreads due to a change in market conditions. Customer hedging revenue fell due to a reduction in customer energy hedging and transaction card revenue decreased following elevated fourth quarter transaction activity. Net loans charged-off increased $1.2 million to $4.2 million in the first quarter of 2024. Personnel expense decreased $7.7 million primarily due to lower incentive compensation costs. Non-personnel expense decreased $4.1 million due to decreases in other expense and professional fees. Average loans increased $139 million or 1% to $20.1 billion. Average deposits increased $237 million or 2% to $15.7 billion.

Consumer Banking contributed $53.8 million to net income in the first quarter of 2024, consistent with the prior quarter. Combined net interest revenue and fee revenue decreased $6.1 million, largely due to increased customer demand for time deposits and a reduction in deposit spreads from a change in market conditions, partially offset by an increase in mortgage banking revenue from higher production volumes. Operating expense decreased $1.6 million. The net benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to a net cost of $5.2 million for the fourth quarter of 2023. Average loans increased $36 million or 2% to $1.9 billion. Average deposits were mostly unchanged from the previous quarter.

Wealth Management contributed $34.2 million to net income in the first quarter of 2024, a decrease of $28.5 million compared to the fourth quarter of 2023. The prior quarter included a pre-tax gain of $31.0 million, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKFI. Combined net interest and fee revenue decreased $2.7 million due to declining spread on deposits. Total revenue from institutional trading activities increased $1.4 million, primarily in U.S. government residential mortgage-backed securities trading activity. Personnel expense decreased $2.4 million as the prior quarter included transaction related employee costs on the BOKFI sale. Non-personnel expense increased $5.6 million, primarily due to an increased level of operational losses, partially offset by a $2.7 milliondecrease in professional fees. Average loans increased $44 million or 2% to $2.2 billion. Average deposits increased $1.2 billion or 14% to $9.2 billion. Assets under management or administration were $105.5 billion, an increase of $794 million.

Conference Call & Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 24, 2024 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company's website at bokf.com. The conference call can also be accessed by dialing 1-800-715-9871 toll free, or 1-646-307-1963, conference ID: 5365153. A webcast replay will also be available shortly after conclusion of the live call at bokf.com or by dialing 1-800-770-2030 and referencing playback ID: 5365153 followed by # key.

About BOK Financial Corporation

BOK Financial Corporation is a $50 billion regional financial services company headquartered in Tulsa, Oklahoma with $106 billion in assets under management or administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc.; and BOK Financial Private Wealth, Inc. BOKF, NA's holdings include TransFund and Cavanal Hill Investment Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Wisconsin, Connecticut and Tennessee. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment and trustservices, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2024 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "outlook," "projects," "will," "intends," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that acquisitions and growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These various forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in government, changes in commodity prices, interest rates and interest rate relationships, inflation, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial Corporation and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Assets
Cash and due from banks
$
801,677
$
947,613
Interest-bearing cash and cash equivalents
354,070
400,652
Trading securities
5,441,038
5,193,505
Investment securities, net of allowance
2,185,744
2,244,153
Available for sale securities
12,653,088
12,286,681
Fair value option securities
19,805
20,671
Restricted equity securities
382,549
423,099
Residential mortgage loans held for sale
75,449
56,935
Loans:
Commercial
15,132,867
14,803,769
Commercial real estate
5,236,677
5,337,647
Loans to individuals
3,803,016
3,763,552
Total loans
24,172,560
23,904,968
Allowance for loan losses
(281,623
)
(277,123
)
Loans, net of allowance
23,890,937
23,627,845
Premises and equipment, net
628,050
622,223
Receivables
308,736
317,922
Goodwill
1,044,749
1,044,749
Intangible assets, net
56,894
59,979
Mortgage servicing rights
319,330
293,884
Real estate and other repossessed assets, net
2,860
2,875
Derivative contracts, net
263,493
410,304
Cash surrender value of bank-owned life insurance
410,368
409,548
Receivable on unsettled securities sales
67,854
391,910
Other assets
1,253,689
1,070,282
Total assets
$
50,160,380
$
49,824,830

Liabilities
Deposits:
Demand
$
8,414,056
$
9,196,493
Interest-bearing transaction
22,748,185
20,964,101
Savings
854,397
847,085
Time
3,366,909
3,012,022
Total deposits
35,383,547
34,019,701
Funds purchased and repurchase agreements
1,261,517
1,122,748
Other borrowings
6,724,652
7,701,552
Subordinated debentures
131,154
131,150
Accrued interest, taxes and expense
318,622
338,996
Due on unsettled securities purchases
264,230
254,057
Derivative contracts, net
438,605
587,473
Other liabilities
506,418
523,734
Total liabilities
45,028,745
44,679,411
Shareholders' equity
Capital, surplus and retained earnings
5,738,879
5,741,542
Accumulated other comprehensive loss
(610,128
)
(599,100
)
Total shareholders' equity
5,128,751
5,142,442
Non-controlling interests
2,884
2,977
Total equity
5,131,635
5,145,419
Total liabilities and equity
$
50,160,380
$
49,824,830

AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Assets
Interest-bearing cash and cash equivalents
$
567,680
$
605,839
$
598,734
$
708,475
$
616,596
Trading securities
5,371,209
5,448,403
5,444,587
4,274,803
3,031,969
Investment securities, net of allowance
2,210,040
2,264,194
2,331,595
2,408,122
2,473,796
Available for sale securities
12,537,981
12,063,398
11,925,800
12,033,597
11,738,693
Fair value option securities
20,080
20,086
41,741
245,469
300,372
Restricted equity securities
412,376
432,780
445,532
351,944
316,724
Residential mortgage loans held for sale
57,402
61,146
77,208
72,959
65,769
Loans:
Commercial
14,992,639
14,680,001
14,527,676
14,316,474
14,046,237
Commercial real estate
5,188,152
5,293,021
5,172,876
4,896,230
4,757,362
Loans to individuals
3,767,776
3,732,086
3,713,756
3,676,350
3,672,648
Total loans
23,948,567
23,705,108
23,414,308
22,889,054
22,476,247
Allowance for loan losses
(278,449
)
(273,717
)
(267,205
)
(252,890
)
(238,909
)
Loans, net of allowance
23,670,118
23,431,391
23,147,103
22,636,164
22,237,338
Total earning assets
44,846,886
44,327,237
44,012,300
42,731,533
40,781,257
Cash and due from banks
861,319
883,858
799,291
875,280
857,771
Derivative contracts, net
326,564
372,789
412,707
410,793
546,018
Cash surrender value of bank-owned life insurance
409,230
407,665
408,295
409,313
408,124
Receivable on unsettled securities sales
307,389
276,856
268,344
163,903
177,312
Other assets
3,276,184
3,445,265
3,418,615
3,317,285
3,211,986
Total assets
$
50,027,572
$
49,713,670
$
49,319,552
$
47,908,107
$
45,982,468

Liabilities
Deposits:
Demand
$
8,631,416
$
9,378,886
$
10,157,821
$
10,998,201
$
12,406,408
Interest-bearing transaction
22,264,259
20,449,370
19,415,599
18,368,592
18,639,900
Savings
843,037
845,705
874,530
926,882
958,443
Time
3,287,179
3,002,252
2,839,947
2,076,037
1,477,720
Total deposits
35,025,891
33,676,213
33,287,897
32,369,712
33,482,471
Funds purchased and repurchase agreements
1,258,044
2,476,973
2,699,027
3,670,994
1,759,237
Other borrowings
6,844,633
7,120,963
6,968,309
5,275,291
4,512,280
Subordinated debentures
131,154
131,151
131,151
131,153
131,166
Derivative contracts, net
537,993
524,101
429,989
576,558
428,023
Due on unsettled securities purchases
499,936
363,358
435,927
436,353
316,738
Other liabilities
574,954
483,934
461,686
503,134
511,530
Total liabilities
44,872,605
44,776,693
44,413,986
42,963,195
41,141,445
Total equity
5,154,967
4,936,977
4,905,566
4,944,912
4,841,023
TOTAL LIABILITIES AND EQUITY
$
50,027,572
$
49,713,670
$
49,319,552
$
47,908,107
$
45,982,468

STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
March 31,
(In thousands, except per share data)
2024
2023
Interest revenue
$
645,212
$
516,729
Interest expense
351,640
164,381
Net interest revenue
293,572
352,348
Provision for credit losses
8,000
16,000
Net interest revenue after provision for credit losses
285,572
336,348
Other operating revenue:
Brokerage and trading revenue
59,179
52,396
Transaction card revenue
25,493
25,621
Fiduciary and asset management revenue
55,305
50,657
Deposit service charges and fees
28,685
25,968
Mortgage banking revenue
18,967
14,367
Other revenue
12,935
16,970
Total fees and commissions
200,564
185,979
Other gains, net
4,269
2,251
Loss on derivatives, net
(8,633
)
(1,344
)
Loss on fair value option securities, net
(305
)
(2,962
)
Change in fair value of mortgage servicing rights
10,977
(6,059
)
Loss on available for sale securities, net
(45,171
)
-
Total other operating revenue
161,701
177,865
Other operating expense:
Personnel
202,653
182,145
Business promotion
7,978
8,569
Professional fees and services
12,010
13,048
Net occupancy and equipment
30,293
28,459
FDIC and other insurance
8,740
7,315
FDIC special assessment
6,454
-
Data processing and communications
45,564
44,802
Printing, postage and supplies
3,997
3,893
Amortization of intangible assets
3,003
3,391
Mortgage banking costs
6,355
5,782
Other expense
13,337
8,408
Total other operating expense
340,384
305,812

Net income before taxes
106,889
208,401
Federal and state income taxes
23,195
45,905

Net income
83,694
162,496
Net income (loss) attributable to non-controlling interests
(9
)
128
Net income attributable to BOK Financial Corporation shareholders
$
83,703
$
162,368

Average shares outstanding:
Basic
64,290,105
66,331,775
Diluted
64,290,105
66,331,775

Net income per share:
Basic
$
1.29
$
2.43
Diluted
$
1.29
$
2.43

QUARTERLY EARNINGS TREND - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
(In thousands, except ratio and per share data)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Interest revenue
$
645,212
$
638,324
$
617,044
$
570,367
$
516,729
Interest expense
351,640
341,649
316,148
248,106
164,381
Net interest revenue
293,572
296,675
300,896
322,261
352,348
Provision for credit losses
8,000
6,000
7,000
17,000
16,000
Net interest revenue after provision for credit losses
285,572
290,675
293,896
305,261
336,348
Other operating revenue:
Brokerage and trading revenue
59,179
60,896
62,312
65,006
52,396
Transaction card revenue
25,493
28,847
26,387
26,003
25,621
Fiduciary and asset management revenue
55,305
51,408
52,256
52,997
50,657
Deposit service charges and fees
28,685
27,770
27,676
27,100
25,968
Mortgage banking revenue
18,967
12,834
13,356
15,141
14,367
Other revenue
12,935
15,035
15,865
14,250
16,970
Total fees and commissions
200,564
196,790
197,852
200,497
185,979
Other gains, net
4,269
40,452
1,474
12,618
2,251
Gain (loss) on derivatives, net
(8,633
)
8,592
(9,010
)
(8,159
)
(1,344
)
Gain (loss) on fair value option securities, net
(305
)
1,031
(203
)
(2,158
)
(2,962
)
Change in fair value of mortgage servicing rights
10,977
(14,356
)
8,039
9,261
(6,059
)
Loss on available for sale securities, net
(45,171
)
(27,626
)
-
(3,010
)
-
Total other operating revenue
161,701
204,883
198,152
209,049
177,865
Other operating expense:
Personnel
202,653
203,022
190,791
190,652
182,145
Business promotion
7,978
8,629
6,958
7,640
8,569
Charitable contributions to BOKF Foundation
-
1,542
23
1,142
-
Professional fees and services
12,010
16,288
13,224
12,777
13,048
Net occupancy and equipment
30,293
30,355
32,583
30,105
28,459
FDIC and other insurance
8,740
8,495
7,996
6,974
7,315
FDIC special assessment
6,454
43,773
-
-
-
Data processing and communications
45,564
45,584
45,672
45,307
44,802
Printing, postage and supplies
3,997
3,844
3,760
3,728
3,893
Amortization of intangible assets
3,003
3,543
3,474
3,474
3,391
Mortgage banking costs
6,355
8,085
8,357
8,300
5,782
Other expense
13,337
10,923
11,475
8,574
8,408
Total other operating expense
340,384
384,083
324,313
318,673
305,812
Net income before taxes
106,889
111,475
167,735
195,637
208,401
Federal and state income taxes
23,195
28,953
33,256
44,001
45,905
Net income
83,694
82,522
134,479
151,636
162,496
Net income (loss) attributable to non-controlling interests
(9
)
(53
)
(16
)
328
128
Net income attributable to BOK Financial Corporation shareholders
$
83,703
$
82,575
$
134,495
$
151,308
$
162,368

Average shares outstanding:
Basic
64,290,105
64,750,171
65,548,307
65,994,132
66,331,775
Diluted
64,290,105
64,750,171
65,548,307
65,994,132
66,331,775
Net income per share:
Basic
$
1.29
$
1.26
$
2.04
$
2.27
$
2.43
Diluted
$
1.29
$
1.26
$
2.04
$
2.27
$
2.43

FINANCIAL HIGHLIGHTS - UNAUDITED

BOK FINANCIAL CORPORATION

Three Months Ended
(In thousands, except ratio and share data)
Mar. 31,
Dec. 31,
Sep. 30,
June 30,
Mar. 31,
Capital:
Period-end shareholders' equity
$
5,128,751
$
5,142,442
$
4,814,019
$
4,863,854
$
4,874,786
Risk weighted assets
$
38,952,555
$
38,820,979
$
38,791,023
$
38,218,164
$
37,192,197
Risk-based capital ratios:
Common equity tier 1
11.99
%
12.06
%
12.06
%
12.13
%
12.19
%
Tier 1
12.00
%
12.07
%
12.07
%
12.13
%
12.20
%
Total capital
13.15
%
13.16
%
13.16
%
13.24
%
13.21
%
Leverage ratio
9.42
%
9.45
%
9.52
%
9.75
%
9.94
%
Tangible common equity ratio1
8.21
%
8.29
%
7.74
%
7.79
%
8.46
%
Adjusted tangible common equity ratio1
7.92
%
8.02
%
7.35
%
7.49
%
8.22
%

Common stock:
Book value per share
$
79.50
$
79.15
$
73.31
$
73.28
$
73.19
Tangible book value per share
$
62.42
$
62.15
$
56.40
$
56.50
$
56.42
Market value per share:
High
$
92.08
$
87.52
$
92.41
$
90.91
$
106.47
Low
$
77.86
$
62.42
$
77.61
$
74.40
$
80.00
Cash dividends paid
$
35,568
$
35,739
$
35,655
$
35,879
$
36,006
Dividend payout ratio
42.49
%
43.28
%
26.51
%
23.71
%
22.18
%
Shares outstanding, net
64,515,035
64,967,177
65,664,840
66,369,208
66,600,833
Stock buy-back program:
Shares repurchased
616,630
700,237
700,500
266,000
447,071
Amount
$
51,727
$
49,710
$
58,961
$
22,366
$
44,100
Average price paid per share2
$
83.89
$
70.99
$
84.17
$
84.08
$
98.64

Performance ratios (quarter annualized):
Return on average assets
0.67
%
0.66
%
1.08
%
1.27
%
1.43
%
Return on average equity
6.53
%
6.64
%
10.88
%
12.28
%
13.61
%
Return on average tangible common equity1
8.31
%
8.56
%
14.08
%
15.86
%
17.71
%
Net interest margin
2.61
%
2.64
%
2.69
%
3.00
%
3.45
%
Efficiency ratio1,3
67.13
%
71.62
%
64.01
%
58.75
%
56.79
%

Other data:
Tax equivalent interest
$
2,100
$
2,112
$
2,214
$
2,200
$
2,285
Net unrealized loss on available for sale securities
$
(643,259
)
$
(616,624
)
$
(1,034,520
)
$
(898,906
)
$
(741,508
)
Mortgage banking:
Mortgage production revenue
$
3,525
$
(2,535
)
$
(1,887
)
$
(284
)
$
(633
)

Mortgage loans funded for sale
$
139,176
$
139,255
$
173,727
$
214,785
$
138,624
Add: Current period-end outstanding commitments
67,951
34,783
49,284
55,031
71,693
Less: Prior period end outstanding commitments
34,783
49,284
55,031
71,693
45,492
Total mortgage production volume
$
172,344
$
124,754
$
167,980
$
198,123
$
164,825

Mortgage loan refinances to mortgage loans funded for sale
10
%
10
%
9
%
8
%
9
%
Realized margin on funded mortgage loans
1.46
%
(0.98
)%
(0.94
)%
(0.14
)%
(1.25
)%
Production revenue as a percentage of production volume
2.05
%
(2.03
)%
(1.12
)%
(0.14
)%
(0.38
)%

Mortgage servicing revenue
$
15,442
$
15,369
$
15,243
$
15,425
$
15,000
Average outstanding principal balance of mortgage loans serviced for others
$
21,088,898
$
20,471,030
$
20,719,116
$
20,807,044
$
21,121,319
Average mortgage servicing revenue rates
0.29
%
0.30
%
0.29
%
0.30
%
0.29
%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$
(9,357
)
$
8,275
$
(8,980
)
$
(8,099
)
$
(1,711
)
Gain (loss) on fair value option securities, net
(305
)
1,031
(203
)
(2,158
)
(2,962
)
Gain (loss) on economic hedge of mortgage servicing rights
(9,662
)
9,306
(9,183
)
(10,257
)
(4,673
)
Gain (loss) on changes in fair value of mortgage servicing rights
10,977
(14,356
)
8,039
9,261
(6,059
)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue
1,315
(5,050
)
(1,144
)
(996
)
(10,732
)
Net interest revenue (expense) on fair value option securities4
(155
)
(101
)
(112
)
(232
)
187
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges
$
1,160
$
(5,151
)
$
(1,256
)
$
(1,228
)
$
(10,545
)

1 See Reconciliation of Non-GAAP Measures following.
2 Excludes 1% excise tax on corporate stock repurchases.
3 Prior period ratios have been adjusted to be consistent with the current period presentation.
4 Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES - UNAUDITED

BOK FINANCIAL CORPORATION

Three Months Ended
(In thousands, except ratio and share data)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity
$
5,128,751
$
5,142,442
$
4,814,019
$
4,863,854
$
4,874,786
Less: Goodwill and intangible assets, net
1,101,643
1,104,728
1,110,553
1,113,995
1,117,438
Tangible common equity
4,027,108
4,037,714
3,703,466
3,749,859
3,757,348
Add: Unrealized gain (loss) on investment securities, net
(185,978
)
(171,903
)
(246,395
)
(189,152
)
(140,947
)
Add: Tax effect on unrealized gain (loss) on investment securities, net
43,740
40,430
57,949
44,486
33,149
Adjusted tangible common equity
$
3,884,870
$
3,906,241
$
3,515,020
$
3,605,193
$
3,649,550

Total assets
$
50,160,380
$
49,824,830
$
48,931,397
$
49,237,920
$
45,524,122
Less: Goodwill and intangible assets, net
1,101,643
1,104,728
1,110,553
1,113,995
1,117,438
Tangible assets
$
49,058,737
$
48,720,102
$
47,820,844
$
48,123,925
$
44,406,684

Tangible common equity ratio
8.21
%
8.29
%
7.74
%
7.79
%
8.46
%
Adjusted tangible common equity ratio
7.92
%
8.02
%
7.35
%
7.49
%
8.22
%

Reconciliation of return on average tangible common equity:
Total average shareholders' equity
$
5,152,061
$
4,933,917
$
4,902,119
$
4,941,352
$
4,837,567
Less: Average goodwill and intangible assets, net
1,103,090
1,107,949
1,112,217
1,115,652
1,119,123
Average tangible common equity
$
4,048,971
$
3,825,968
$
3,789,902
$
3,825,700
$
3,718,444

Net Income
$
83,703
$
82,575
$
134,495
$
151,308
$
162,368

Return on average tangible common equity
8.31
%
8.56
%
14.08
%
15.86
%
17.71
%

Calculation of efficiency ratio and efficiency ratio excluding adjustments:
Total other operating expense
$
340,384
$
384,083
$
324,313
$
318,673
$
305,812
Less: Amortization of intangible assets
3,003
3,543
3,474
3,474
3,391
Numerator for efficiency ratio
337,381
380,540
320,839
315,199
302,421
Less: FDIC special assessment
6,454
43,773
-
-
-
Less: Expenses related to sale of BOKF Insurance
-
3,436
-
-
-
Adjusted numerator for efficiency ratio
$
330,927
$
333,331
$
320,839
$
315,199
$
302,421

Net interest revenue
$
293,572
$
296,675
$
300,896
$
322,261
$
352,348
Tax-equivalent adjustment
2,100
2,112
2,214
2,200
2,285
Tax-equivalent net interest revenue
295,672
298,787
303,110
324,461
354,633
Total other operating revenue
161,701
204,883
198,152
209,049
177,865
Less: Loss on available for sale securities, net
(45,171
)
(27,626
)
-
(3,010
)
-
Denominator for efficiency ratio
502,544
531,296
501,262
536,520
532,498
Less: Gain on sale of BOKF Insurance
-
31,007
-
-
-
Adjusted denominator for efficiency ratio
$
502,544
$
500,289
$
501,262
$
536,520
$
532,498

Efficiency ratio
67.13
%
71.62
%
64.01
%
58.75
%
56.79
%
Efficiency ratio excluding adjustments
65.85
%
66.63
%
64.01
%
58.75
%
56.79
%



Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue
$
293,572
$
296,675
$
300,896
$
322,261
$
352,348
Less: Trading activities net interest revenue
(498
)
(3,305
)
(7,343
)
(3,461
)
70
Net interest revenue excluding trading activities
294,070
299,980
308,239
325,722
352,278
Tax-equivalent adjustment
2,100
2,112
2,214
2,200
2,285
Tax-equivalent net interest revenue excluding trading activities
$
296,170
$
302,092
$
310,453
$
327,922
$
354,563

Average interest-earning assets
$
44,846,886
$
44,327,237
$
44,012,300
$
42,731,533
$
40,781,257
Less: Average trading activities interest-earning assets
5,371,209
5,448,403
5,444,587
4,274,803
3,031,969
Average interest-earning assets excluding trading activities
$
39,475,677
$
38,878,834
$
38,567,713
$
38,456,730
$
37,749,288

Net interest margin on average interest-earning assets
2.61
%
2.64
%
2.69
%
3.00
%
3.45
%
Net interest margin on average trading activities interest-earning assets
(0.07
)%
(0.20
)%
(0.49
)%
(0.34
)%
-
%
Net interest margin on average interest-earning assets excluding trading activities
2.97
%
3.03
%
3.14
%
3.36
%
3.72
%

Reconciliation of pre-provision net revenue:
Net income before taxes
$
106,889
$
111,475
$
167,735
$
195,637
$
208,401
Provision for expected credit losses
8,000
6,000
7,000
17,000
16,000
Net income (loss) attributable to non-controlling interests
(9
)
(53
)
(16
)
328
128
Pre-provision net revenue
$
114,898
$
117,528
$
174,751
$
212,309
$
224,273

Reconciliation of adjusted net income and earnings per share:
Net income
$
83,703
$
82,575
$
134,495
$
151,308
$
162,368
Add: FDIC special assessment, net of tax
4,936
33,478
-
-
-
Less: Loss on repositioning of available for sale securities, net of tax
(34,547
)
(21,129
)
-
(2,302
)
-
Less: Gain on sale of BOKF Insurance, net of tax
-
23,715
-
-
-
Adjusted net income
$
123,186
$
113,467
$
134,495
$
153,610
$
162,368

Earnings per share
$
1.29
$
1.26
$
2.04
$
2.27
$
2.43
Add: FDIC special assessment, net of tax
0.08
0.52
-
-
-
Less: Loss on repositioning of available for sale securities, net of tax
(0.54
)
(0.33
)
-
(0.03
)
-
Less: Gain on sale of BOKF Insurance, net of tax
-
0.37
-
-
-
Adjusted earnings per share
$
1.91
$
1.74
$
2.04
$
2.30
$
2.43

Explanation of Non-GAAP Measures

The tangible common equity ratio and return on average tangible common equity are primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities, less intangible assets and equity that does not benefit common shareholders. The adjusted tangible common equity ratio also includes unrealized gains and losses on the investment portfolio. These measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income in shareholders' equity.

The efficiency ratio measures the company's ability to use its assets and manage its liabilities effectively in the current period.

Net interest revenue and net interest margin excluding trading activities removes the effect of trading activities on these metrics allowing management and investors to assess the performance of the company's core lending and deposit activities without the associated volatility from trading activities.

Pre-provision net revenue is a measure of revenue less expenses and is calculated before provision for credit losses and income tax expense. This financial measure is frequently used by investors and analysts and enables them to assess a company's ability to generate earnings to cover credit losses through a credit cycle. It also provides an additional basis for comparing the results of operations between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.

We believe adjusting net income and earnings per share for notable non-core items enhances comparability of results with prior periods, demonstrates the impact of significant items and provides a useful measure for determining the company's expenses that are core to our business operations and are expected to recur over time.

LOANS TREND - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Commercial:
Healthcare
$
4,245,939
$
4,143,233
$
4,083,134
$
3,991,387
$
3,899,341
Services
3,529,421
3,576,223
3,566,361
3,585,169
3,563,702
Energy
3,443,719
3,437,101
3,490,602
3,508,752
3,398,057
General business
3,913,788
3,647,212
3,579,742
3,449,208
3,356,249
Total commercial
15,132,867
14,803,769
14,719,839
14,534,516
14,217,349

Commercial real estate:
Multifamily
1,960,839
1,872,760
1,734,688
1,502,971
1,363,881
Industrial
1,343,970
1,475,165
1,432,629
1,349,709
1,309,435
Office
901,105
909,442
981,876
1,005,660
1,045,700
Retail
543,735
592,632
608,073
617,886
618,264
Residential construction and land development
83,906
95,052
100,465
106,370
102,828
Other commercial real estate
403,122
392,596
383,569
388,205
375,208
Total commercial real estate
5,236,677
5,337,647
5,241,300
4,970,801
4,815,316

Loans to individuals:
Residential mortgage
2,192,584
2,160,640
2,090,992
1,993,690
1,926,027
Residential mortgages guaranteed by U.S. government agencies
139,456
149,807
161,092
186,170
224,753
Personal
1,470,976
1,453,105
1,510,795
1,552,482
1,566,608
Total loans to individuals
3,803,016
3,763,552
3,762,879
3,732,342
3,717,388

Total
$
24,172,560
$
23,904,968
$
23,724,018
$
23,237,659
$
22,750,053

LOANS MANAGED BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Texas:
Commercial
$
7,515,070
$
7,384,107
$
7,249,963
$
7,223,820
$
7,103,166
Commercial real estate
1,935,728
1,987,037
1,873,477
1,748,796
1,675,831
Loans to individuals
964,464
914,134
961,299
974,911
992,343
Total Texas
10,415,262
10,285,278
10,084,739
9,947,527
9,771,340

Oklahoma:
Commercial
3,478,146
3,275,907
3,384,627
3,251,547
3,178,934
Commercial real estate
605,419
606,515
601,087
573,559
574,708
Loans to individuals
2,176,268
2,147,782
2,100,974
2,079,311
2,049,472
Total Oklahoma
6,259,833
6,030,204
6,086,688
5,904,417
5,803,114

Colorado:
Commercial
2,244,416
2,273,179
2,219,460
2,179,473
2,148,066
Commercial real estate
766,100
769,329
710,552
683,973
646,537
Loans to individuals
221,291
228,257
227,569
223,200
231,368
Total Colorado
3,231,807
3,270,765
3,157,581
3,086,646
3,025,971

Arizona:
Commercial
1,149,394
1,143,682
1,173,491
1,177,778
1,115,973
Commercial real estate
1,007,972
1,003,331
1,014,151
926,750
881,465
Loans to individuals
218,664
248,873
260,282
242,102
240,556
Total Arizona
2,376,030
2,395,886
2,447,924
2,346,630
2,237,994

Kansas/Missouri:
Commercial
320,609
331,179
307,725
309,148
318,782
Commercial real estate
497,036
511,947
547,708
516,299
489,951
Loans to individuals
141,767
144,958
132,137
138,960
129,580
Total Kansas/Missouri
959,412
988,084
987,570
964,407
938,313

New Mexico:
Commercial
317,651
291,736
297,714
287,443
280,945
Commercial real estate
352,559
389,106
405,989
425,472
449,715
Loans to individuals
67,814
67,485
69,418
64,803
65,770
Total New Mexico
738,024
748,327
773,121
777,718
796,430

Arkansas:
Commercial
107,581
103,979
86,859
105,307
71,483
Commercial real estate
71,863
70,382
88,336
95,952
97,109
Loans to individuals
12,748
12,063
11,200
9,055
8,299
Total Arkansas
192,192
186,424
186,395
210,314
176,891

Total BOK Financial
$
24,172,560
$
23,904,968
$
23,724,018
$
23,237,659
$
22,750,053

Loans attributed to a principal market may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Oklahoma:
Demand
$
3,365,529
$
3,586,091
$
4,019,019
$
4,273,136
$
4,369,944
Interest-bearing:
Transaction
12,362,193
10,929,704
9,970,955
9,979,534
9,468,100
Savings
509,775
500,313
508,619
531,536
564,829
Time
2,136,583
1,984,336
2,019,749
1,945,916
942,787
Total interest-bearing
15,008,551
13,414,353
12,499,323
12,456,986
10,975,716
Total Oklahoma
18,374,080
17,000,444
16,518,342
16,730,122
15,345,660

Texas:
Demand
2,201,561
2,306,334
2,599,998
2,876,568
3,154,789
Interest-bearing:
Transaction
5,125,834
5,035,856
5,046,288
4,532,093
4,366,932
Savings
157,108
155,652
154,863
162,704
175,012
Time
605,526
492,753
436,218
377,424
321,774
Total interest-bearing
5,888,468
5,684,261
5,637,369
5,072,221
4,863,718
Total Texas
8,090,029
7,990,595
8,237,367
7,948,789
8,018,507

Colorado:
Demand
1,316,971
1,633,672
1,598,622
1,726,130
1,869,194
Interest-bearing:
Transaction
1,951,232
1,921,605
1,888,026
1,825,295
2,126,435
Savings
63,675
67,646
63,129
66,968
72,548
Time
237,656
201,393
185,030
148,840
128,583
Total interest-bearing
2,252,563
2,190,644
2,136,185
2,041,103
2,327,566
Total Colorado
3,569,534
3,824,316
3,734,807
3,767,233
4,196,760

New Mexico:
Demand
683,643
794,467
853,571
912,218
997,364
Interest-bearing:
Transaction
1,085,946
886,089
1,049,903
712,541
674,328
Savings
95,944
95,453
97,753
102,729
111,771
Time
298,556
258,195
217,535
179,548
137,875
Total interest-bearing
1,480,446
1,239,737
1,365,191
994,818
923,974
Total New Mexico
2,164,089
2,034,204
2,218,762
1,907,036
1,921,338

Arizona:
Demand
502,143
524,167
522,142
592,144
780,051
Interest-bearing:
Transaction
1,181,539
1,174,715
903,535
800,970
687,527
Savings
12,024
11,636
12,340
14,489
16,993
Time
46,962
41,884
36,689
31,248
27,755
Total interest-bearing
1,240,525
1,228,235
952,564
846,707
732,275
Total Arizona
1,742,668
1,752,402
1,474,706
1,438,851
1,512,326


Kansas/Missouri:
Demand
316,041
326,496
351,236
363,534
393,321
Interest-bearing:
Transaction
985,706
966,166
981,091
1,014,247
1,040,009
Savings
13,095
13,821
14,331
16,316
18,292
Time
30,411
23,955
22,437
16,176
13,061
Total interest-bearing
1,029,212
1,003,942
1,017,859
1,046,739
1,071,362
Total Kansas/Missouri
1,345,253
1,330,438
1,369,095
1,410,273
1,464,683

Arkansas:
Demand
28,168
25,266
29,635
38,818
42,312
Interest-bearing:
Transaction
55,735
49,966
57,381
43,301
71,158
Savings
2,776
2,564
2,898
3,195
3,228
Time
11,215
9,506
9,559
7,225
4,775
Total interest-bearing
69,726
62,036
69,838
53,721
79,161
Total Arkansas
97,894
87,302
99,473
92,539
121,473

Total BOK Financial
$
35,383,547
$
34,019,701
$
33,652,552
$
33,294,843
$
32,580,747

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Tax-equivalent asset yields:
Interest-bearing cash and cash equivalents
4.96
%
5.30
%
5.43
%
5.41
%
4.28
%
Trading securities
5.12
%
5.05
%
4.76
%
4.50
%
4.52
%
Investment securities, net of allowance
1.42
%
1.42
%
1.43
%
1.44
%
1.46
%
Available for sale securities
3.48
%
3.27
%
3.11
%
3.00
%
2.87
%
Fair value option securities
3.59
%
3.57
%
4.61
%
5.07
%
5.17
%
Restricted equity securities
8.59
%
8.01
%
7.88
%
7.31
%
7.34
%
Residential mortgage loans held for sale
6.25
%
6.59
%
6.27
%
5.85
%
5.79
%
Loans
7.40
%
7.36
%
7.25
%
7.03
%
6.67
%
Allowance for loan losses
Loans, net of allowance
7.48
%
7.45
%
7.33
%
7.10
%
6.74
%
Total tax-equivalent yield on earning assets
5.73
%
5.64
%
5.49
%
5.29
%
5.06
%

Cost of interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing transaction
3.68
%
3.44
%
3.18
%
2.60
%
1.91
%
Savings
0.57
%
0.53
%
0.47
%
0.21
%
0.10
%
Time
4.54
%
4.13
%
3.96
%
3.27
%
1.95
%
Total interest-bearing deposits
3.69
%
3.43
%
3.17
%
2.56
%
1.83
%
Funds purchased and repurchase agreements
4.05
%
4.79
%
4.81
%
4.58
%
3.33
%
Other borrowings
5.56
%
5.55
%
5.48
%
5.12
%
4.73
%
Subordinated debt
7.09
%
7.09
%
7.02
%
6.79
%
6.40
%
Total cost of interest-bearing liabilities
4.08
%
3.98
%
3.81
%
3.27
%
2.43
%
Tax-equivalent net interest revenue spread
1.65
%
1.66
%
1.68
%
2.02
%
2.63
%
Effect of noninterest-bearing funding sources and other
0.96
%
0.98
%
1.01
%
0.98
%
0.82
%
Tax-equivalent net interest margin
2.61
%
2.64
%
2.69
%
3.00
%
3.45
%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.


CREDIT QUALITY INDICATORS - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
(In thousands, except ratios)
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
June 30, 2023
Mar. 31, 2023
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare
$
49,307
$
81,529
$
41,836
$
36,753
$
37,247
Energy
14,991
17,843
19,559
20,037
127
Services
3,319
3,616
2,820
4,541
8,097
General business
7,003
7,143
6,483
11,946
8,961
Total commercial
74,620
110,131
70,698
73,277
54,432

Commercial real estate
22,087
7,320
7,418
17,395
21,668

Loans to individuals:
Permanent mortgage
13,449
18,056
30,954
29,973
29,693
Permanent mortgage guaranteed by U.S. government agencies
9,217
9,709
10,436
11,473
14,302
Personal
142
253
79
133
200
Total loans to individuals
22,808
28,018
41,469
41,579
44,195

Total nonaccruing loans
119,515
145,469
119,585
132,251
120,295
Real estate and other repossessed assets
2,860
2,875
3,753
4,227
12,651
Total nonperforming assets
$
122,375
$
148,344
$
123,338
$
136,478
$
132,946

Total nonperforming assets excluding those guaranteed by U.S. government agencies
$
113,158
$
138,635
$
112,902
$
125,005
$
118,644

Accruing loans 90 days past due1
$
-
$
170
$
64
$
220
$
76

Gross charge-offs
$
7,060
$
5,007
$
10,593
$
8,049
$
3,667
Recoveries
(1,600
)
(911
)
(4,062
)
(1,346
)
(2,898
)
Net charge-offs
$
5,460
$
4,096
$
6,531
$
6,703
$
769

Provision for loan losses
$
9,960
$
9,105
$
15,931
$
19,957
$
14,525
Provision for credit losses from off-balance sheet unfunded loan commitments
(1,658
)
(3,627
)
(7,336
)
(3,003
)
2,024
Provision for expected credit losses from mortgage banking activities
(265
)
530
(1,474
)
78
(488
)
Provision for credit losses related to held-to maturity (investment) securities portfolio
(37
)
(8
)
(121
)
(32
)
(61
)
Total provision for credit losses
$
8,000
$
6,000
$
7,000
$
17,000
$
16,000




Allowance for loan losses to period end loans
1.17
%
1.16
%
1.15
%
1.13
%
1.10
%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.36
%
1.36
%
1.37
%
1.39
%
1.37
%
Nonperforming assets to period end loans and repossessed assets
0.51
%
0.62
%
0.52
%
0.59
%
0.58
%
Net charge-offs (annualized) to average loans
0.09
%
0.07
%
0.11
%
0.12
%
0.01
%
Allowance for loan losses to nonaccruing loans2
255.33
%
204.13
%
249.31
%
217.52
%
235.36
%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans2
298.23
%
240.20
%
297.50
%
267.15
%
294.74
%

1 Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

SEGMENTS - UNAUDITED
BOK FINANCIAL CORPORATION

Three Months Ended
1Q24 vs 4Q23
1Q24 vs 1Q23
(In thousands, except ratios)
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Change
% Change
Change
% Change
Commercial Banking:
Net interest revenue
$
245,121
$
267,879
$
284,056
$
(22,758
)
(8.5
)%
$
(38,935
)
(13.7
)%
Fees and commissions revenue
50,630
60,937
55,835
(10,307
)
(16.9
)%
(5,205
)
(9.3
)%
Combined net interest and fee revenue
295,751
328,816
339,891
(33,065
)
(10.1
)%
(44,140
)
(13.0
)%
Other operating expense
70,095
81,899
73,134
(11,804
)
(14.4
)%
(3,039
)
(4.2
)%
Corporate expense allocations
18,397
18,040
17,718
357
2.0
%
679
3.8
%
Net income
153,250
171,084
190,231
(17,834
)
(10.4
)%
(36,981
)
(19.4
)%

Average assets
29,806,817
29,346,459
28,162,934
460,358
1.6
%
1,643,883
5.8
%
Average loans
20,067,170
19,928,602
18,750,426
138,568
0.7
%
1,316,744
7.0
%
Average deposits
15,730,241
15,493,326
15,861,285
236,915
1.5
%
(131,044
)
(0.8
)%

Consumer Banking:
Net interest revenue
$
102,149
$
114,396
$
109,381
$
(12,247
)
(10.7
)%
$
(7,232
)
(6.6
)%
Fees and commissions revenue
36,207
30,075
30,581
6,132
20.4
%
5,626
18.4
%
Combined net interest and fee revenue
138,356
144,471
139,962
(6,115
)
(4.2
)%
(1,606
)
(1.1
)%
Other operating expense
53,447
55,079
50,198
(1,632
)
(3.0
)%
3,249
6.5
%
Corporate expense allocations
14,172
12,705
11,622
1,467
11.5
%
2,550
21.9
%
Net income
53,804
53,695
50,683
109
0.2
%
3,121
6.2
%

Average assets
9,391,981
9,342,840
9,934,511
49,141
0.5
%
(542,530
)
(5.5
)%
Average loans
1,913,586
1,877,303
1,747,237
36,283
1.9
%
166,349
9.5
%
Average deposits
7,901,167
7,890,032
8,248,541
11,135
0.1
%
(347,374
)
(4.2
)%

Wealth Management:
Net interest revenue
$
40,109
$
41,643
$
54,106
$
(1,534
)
(3.7
)%
$
(13,997
)
(25.9
)%
Fees and commissions revenue
118,704
119,872
108,911
(1,168
)
(1.0
)%
9,793
9.0
%
Combined net interest and fee revenue
158,813
161,515
163,017
(2,702
)
(1.7
)%
(4,204
)
(2.6
)%
Other operating expense
99,535
96,275
82,039
3,260
3.4
%
17,496
21.3
%
Corporate expense allocations
14,558
14,198
12,360
360
2.5
%
2,198
17.8
%
Net income
34,165
62,690
52,447
(28,525
)
(45.5
)%
(18,282
)
(34.9
)%

Average assets
15,759,328
14,879,450
11,663,096
879,878
5.9
%
4,096,232
35.1
%
Average loans
2,198,803
2,154,416
2,201,622
44,387
2.1
%
(2,819
)
(0.1
)%
Average deposits
9,237,965
8,085,643
7,432,413
1,152,322
14.3
%
1,805,552
24.3
%
Fiduciary assets
60,365,292
59,798,693
57,457,925
566,599
0.9
%
2,907,367
5.1
%
Assets under management or administration
105,530,903
104,736,999
102,310,126
793,904
0.8
%
3,220,777
3.1
%

SOURCE: BOK Financial Corp




View the original press release on accesswire.com
Stock Information
Company Name: BOK Financial Corporation
Stock Symbol: BOKF
Market: NASDAQ
Website: investor.bokf.com
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