On July 22, 2024, BOK Financial Corp (BOKF, Financial) released its 8-K filing for the second quarter of 2024, reporting earnings that surpassed analyst expectations. The company, the largest financial institution in Oklahoma, provides a comprehensive range of financial products and services through its commercial banking, consumer banking, and wealth management segments.
Performance Overview
BOK Financial Corp (BOKF, Financial) reported net income of $163.7 million, or $2.54 per diluted share, significantly higher than the analyst estimate of $2.43 per share. This compares to $83.7 million, or $1.29 per diluted share, in the same quarter last year. Excluding certain one-time items, net income would have been $131.1 million, or $2.02 per share.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | % Change |
|---|---|---|---|
| Net Interest Income | $296.0 million | $293.6 million | 0.8% |
| Net Interest Margin | 2.56% | 2.61% | -0.05% |
| Fees & Commissions Revenue | $200.0 million | $200.6 million | -0.3% |
| Operating Expense | $336.7 million | $340.4 million | -1.1% |
| Loans | $24.6 billion | $24.2 billion | 1.6% |
| Deposits | $36.2 billion | $35.3 billion | 2.5% |
Financial Achievements and Challenges
Net interest income increased by $2.4 million to $296.0 million, while the net interest margin slightly decreased to 2.56% from 2.61%. The company experienced a consistent fees and commissions revenue of $200.0 million, with higher fiduciary and asset management revenue offsetting lower brokerage and trading revenue.
Operating expenses decreased by $3.7 million to $336.7 million, primarily due to a reduction in personnel expenses. However, non-personnel expenses increased by $7.9 million, largely due to a $10.0 million contribution of Visa shares to the BOKF Foundation.
Loan and Deposit Growth
Period-end loans grew by $381 million to $24.6 billion, driven by growth in commercial loans. Deposits increased by $858 million to $36.2 billion, with average deposits rising by $627 million to $35.7 billion. The loan-to-deposit ratio remained stable at 68%.
Credit Quality and Capital Ratios
Nonperforming assets decreased to $93 million, or 0.38% of outstanding loans, from $122 million, or 0.51%, in the previous quarter. Net charge-offs were $6.9 million, or 0.11% of average loans on an annualized basis. The tangible common equity ratio improved to 8.38% from 8.21%, and the Tier 1 capital ratio stood at 12.11%.
CEO Commentary
“BOK Financial once again produced very strong quarterly results, led by our robust commercial and industrial loan growth — a result of our team’s sales efforts and a footprint in states with outstanding economic growth. We continue to grow thoughtfully, taking advantage of current market uncertainty and our robust capital and liquidity levels, while maintaining a disciplined credit culture. This credit culture is foundational to who we are and continues to yield exceptional performance. We also realized gains in our Visa B stock during the quarter, a positive outcome that highlights our patience and long-term approach to generating shareholder value. We have a sustainable business model with a leading mix of core fee businesses while also doing an exemplary job of risk management, evidenced by tangible capital, liquidity, and a commercial real estate concentration being meaningfully favorable to peers.”
Conclusion
BOK Financial Corp (BOKF, Financial) has demonstrated strong financial performance in the second quarter of 2024, exceeding analyst estimates and showcasing robust growth in commercial loans and deposits. The company's disciplined credit culture and strategic gains have positioned it well in the current economic environment. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from BOK Financial Corp for further details.
