BOK Financial Corporation’s BOKF third-quarter 2024 earnings per share (EPS) of $2.18 beat the Zacks Consensus Estimate of $2. The bottom line increased from earnings of $2.04 a year ago.

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The results benefited from higher deposit balances and increased net interest revenues. A decline in provisions was another positive. However, the increase in operating expenses was a major undermining factor.

Net income attributable to shareholders was $139.9 million, down 4.1% year over year.

BOKF’s Quarterly Revenues & Expenses Rise Y/Y

Quarterly net revenues of $516.3 million (net interest revenues and total other operating revenues) moved up 3.5% year over year. The top line surpassed the Zacks Consensus Estimate by 1.4%.  

Net interest revenues were $308.1 million, up 2.4% year over year. The net interest margin expanded 12 basis points to 2.68%.

Total fees and commissions were $202.5 million, up 2.3% year over year. The upside was driven by higher fiduciary and asset management revenues, and transaction card revenues, offset by lower brokerage and trading revenues.

Total other operating expenses were $341 million, up 5.2% year over year. This resulted from increased personnel expenses.

The efficiency ratio rose to 65.11% from the prior year’s 64.01%. An increase in the efficiency ratio indicates a deterioration in profitability.

BOK Financial’s Loans Decline, Deposits Rise

As of Sept. 30, 2024, total loans were $23.9 billion, down 2.3% from the prior quarter. Total deposits rose 2.7% sequentially to $37.2 billion.

BOKF Credit Quality: Mixed Bag

Non-performing assets were $87 million or 0.36% of outstanding loans and repossessed assets as of Sept. 30, 2024, which increased from $80 million or 0.34% in the prior-year quarter.

Provisions for credit losses were $2 million, down 71.5% from the prior-year quarter.

The company recorded net recoveries of $54 thousand against net charge-offs of $6.5 million in the year-ago quarter.

The allowance for loan losses was 1.19% of outstanding loans as of Sept. 30, 2024, up from 1.15% in the year-ago quarter.

BOKF Capital Ratios & Profitability Ratios Improve

As of Sept. 30, 2024, the common equity Tier 1 capital ratio was 12.73%, which increased from 12.10% as of Sept. 30, 2023. The tier 1 capital ratio and total capital ratio were 12.74% and 13.91% compared with 12.11% and 13.25%, respectively, as of Sept. 30, 2023.

The leverage ratio was 9.67%, which declined from 9.39% as of Sept. 30, 2023.
Return on average equity was 10.22%, down from the year-earlier quarter’s 10.88%. Return on average assets was 1.09%, up from 1.08% in the year-ago quarter.