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Mar 31, 2024

BOK Financial Q1 2024 Earnings Report

Reported net income of $83.7 million, or $1.29 per diluted share, for the first quarter of 2024.

Key Takeaways

BOK Financial Corporation reported a net income of $83.7 million, or $1.29 per diluted share, for the first quarter of 2024. Excluding certain items, net income would have been $123.2 million, or $1.91 per share. The results reflect a stabilizing net interest margin, strong asset quality, continued revenue growth, and well-managed expenses.

Net income was $83.7 million, or $1.29 per diluted share.

Net interest revenue totaled $293.6 million, with a net interest margin of 2.61%.

Fees and commissions revenue was $200.6 million.

Period end loans grew by $268 million to $24.2 billion.

Total Revenue
$455M
Previous year: $530M
-14.1%
EPS
$1.91
Previous year: $2.43
-21.4%
Leverage Ratio
9.42%
Previous year: 9.94%
-5.2%
Cash and Equivalents
$354M
Previous year: $1.36B
-74.0%
Total Assets
$50.2B
Previous year: $45.5B
+10.2%

BOK Financial

BOK Financial

BOK Financial Revenue by Segment

Forward Guidance

The company expects the gain on conversion of their Visa B shares to offset the realized losses on the repositioning of the available for sale securities portfolio.

Positive Outlook

  • Expect to receive full value in VISA’s announced exchange offer.
  • Expect to improve 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.
  • Credit metrics remain very strong and are a direct reflection of the focus we put on disciplined risk management.
  • Recognized as one of only 60 organizations to receive the 2024 Gallup Exceptional Workplace Award.

Challenges Ahead

  • 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.
  • Customer hedging revenue decreased $1.3 million, largely as result of reduced energy customer hedging volumes.
  • Other gains, net decreased $36.2 million to $4.3 million.
  • Average demand deposits declined by $747 million.
  • Other expense was up $2.4 million, primarily due to increased operational losses.