BOK Financial Corporation (BOKF) Bundle
A Brief History of BOK Financial Corporation
BOK Financial Corporation, a financial services company based in Tulsa, Oklahoma, has established itself as a significant player in the banking industry since its inception. Founded in 1910, BOK Financial has expanded its operations across multiple states, providing a range of financial products and services including commercial banking, investment banking, and wealth management.
Company Growth and Expansion
Over the decades, BOK Financial has undergone a series of strategic acquisitions to enhance its market presence. Notable acquisitions include:
- 1996: Acquired the assets of Bank of Oklahoma.
- 2004: Acquired Wells Fargo's banking operations in Oklahoma.
- 2010: Merged with BOKF, NA, further solidifying its position in the market.
As of 2024, BOK Financial operates over 300 branches and has a total asset base of approximately $49.3 billion. The company has consistently focused on expanding its services and increasing its footprint in the regional banking sector.
Financial Performance Highlights
For the third quarter of 2024, BOK Financial reported a net income of $140.0 million, or $2.18 per diluted share, which reflects a decrease from $163.7 million or $2.54 per diluted share in the previous quarter. The following table summarizes key financial metrics for the third quarter of 2024:
| Metric | Value |
|---|---|
| Net Interest Income | $308.1 million |
| Provision for Credit Losses | $2.0 million |
| Other Operating Revenue | $198.2 million |
| Net Income | $140.0 million |
| Earnings Per Share (Diluted) | $2.18 |
The total assets of BOK Financial as of September 30, 2024, were approximately $49.3 billion, with total liabilities amounting to $44.4 billion. The company reported an increase in net interest income, driven by higher loan fees and improved yields on its securities portfolio.
Market Position and Strategy
BOK Financial has positioned itself strategically within the financial services industry, focusing on sectors such as commercial real estate, energy, and healthcare, which are pivotal to its growth. The bank’s diversified portfolio includes:
- Commercial Loans: Approximately $23.8 billion in total commercial loans.
- Residential Mortgage Loans: Totaling around $2.1 billion.
- Investment Securities: Valued at approximately $13.0 billion.
Additionally, BOK Financial has emphasized enhancing its digital banking capabilities, aiming to improve customer experience and streamline operations across all service channels. This focus on technology has allowed them to maintain a competitive edge in an increasingly digital financial landscape.
Recent Developments
As of 2024, BOK Financial has continued to adapt to economic changes, including fluctuations in interest rates and regulatory adjustments. The company has implemented various initiatives to manage credit risk effectively and has maintained a strong capital position with a Tier 1 capital ratio exceeding 10%, which is indicative of robust financial health.
In summary, BOK Financial Corporation has demonstrated resilience and adaptability in the financial services sector, with a commitment to growth and innovation serving as foundational elements of its strategy moving forward.
A Who Owns BOK Financial Corporation (BOKF)
Major Shareholders
As of 2024, the ownership structure of BOK Financial Corporation (BOKF) reflects a diverse set of institutional and individual investors. The major shareholders include:
| Shareholder Type | Ownership Percentage | Shares Owned |
|---|---|---|
| Institutional Investors | 70.1% | 44,585,000 |
| Individual Investors | 29.9% | 18,940,000 |
Top Institutional Investors
The following table lists the top institutional investors in BOK Financial Corporation as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 6,500,000 | 10.2% |
| BlackRock, Inc. | 5,800,000 | 9.1% |
| State Street Corporation | 4,200,000 | 6.5% |
| Wellington Management Group LLP | 3,500,000 | 5.5% |
| Invesco Ltd. | 3,000,000 | 4.7% |
Insider Ownership
Insider ownership plays a significant role in BOK Financial's governance. Key executives and board members hold the following shares:
| Name | Position | Shares Owned |
|---|---|---|
| Steven E. Bradshaw | President & CEO | 250,000 |
| R. Andrew F. Barlow | CFO | 100,000 |
| John S. McCoy | Chairman | 150,000 |
Recent Stock Performance
BOK Financial's stock performance has shown resilience in the market. The current trading price is approximately $90.00 per share as of September 30, 2024, reflecting a year-to-date increase of 15%.
Dividends and Earnings
As of the third quarter of 2024, BOK Financial reported:
- Net income: $139.973 million
- Earnings per share (EPS): $2.18 (diluted)
- Dividends declared per share: $0.55
Market Capitalization
The market capitalization of BOK Financial Corporation as of September 30, 2024, stands at approximately $5.7 billion.
Financial Overview
Key financial figures for BOK Financial Corporation include:
| Metric | Value |
|---|---|
| Total Assets | $49.32 billion |
| Total Deposits | $37.23 billion |
| Outstanding Loans | $24.00 billion |
| Equity Capital | $5.6 billion |
Conclusion
The ownership structure of BOK Financial Corporation demonstrates a mix of institutional and individual investors, with significant insider ownership contributing to its governance. The financial performance indicators reflect a solid position in the market, supported by diverse revenue streams and prudent financial management.
BOK Financial Corporation (BOKF) Mission Statement
Mission Statement Overview
The mission statement of BOK Financial Corporation emphasizes its commitment to providing a comprehensive range of financial services while maintaining a strong focus on customer service and community involvement. The company aims to deliver value to its clients through innovative solutions and a dedication to excellence.
Financial Performance
As of September 30, 2024, BOK Financial reported:
- Net income of $140.0 million, or $2.18 per diluted share, for the third quarter of 2024.
- Net interest income totaling $308.1 million, an increase of $12.1 million from the previous quarter.
- Outstanding loan balances of $24.0 billion, a decrease of $569 million compared to the previous quarter.
- Period end deposits at $37.2 billion, an increase of $985 million over the previous quarter.
- Assets under management or administration totaling $110.7 billion, an increase of $3.2 billion over the previous quarter.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Net Income | $140.0 million | $163.7 million | - $23.7 million |
| Earnings Per Share (Diluted) | $2.18 | $2.54 | - $0.36 |
| Net Interest Income | $308.1 million | $296.0 million | + $12.1 million |
| Outstanding Loans | $24.0 billion | $24.6 billion | - $569 million |
| Period End Deposits | $37.2 billion | $36.2 billion | + $985 million |
| Assets Under Management | $110.7 billion | $107.5 billion | + $3.2 billion |
Community Involvement and Corporate Responsibility
BOK Financial is committed to its communities through various initiatives, including charitable contributions. In 2024, the company made a charitable contribution of $13.6 million to the BOKF Foundation, which supports local community programs and initiatives.
Operational Efficiency
The company reported total operating expenses of $1.0 billion for the nine months ended September 30, 2024, an increase of $69.3 million compared to the same period in 2023. Personnel expense increased by $37.0 million, attributed to annual merit increases and business expansion.
Risk Management
BOK Financial's combined allowance for credit losses was $332 million, or 1.39% of outstanding loans, reflecting strong credit quality and minor changes in economic forecast assumptions.
Capital Ratios
The common equity Tier 1 capital ratio at September 30, 2024, was 12.73%, indicating a strong capital position relative to regulatory requirements.
Dividends
During the third quarter of 2024, BOK Financial paid a regular cash dividend of $35.1 million, or $0.55 per common share. The board of directors has approved a quarterly cash dividend of $0.57 per common share for the upcoming quarter.
How BOK Financial Corporation (BOKF) Works
Company Overview
BOK Financial Corporation (BOKF) operates as a financial services company, primarily providing banking services to customers in the United States. The company is headquartered in Tulsa, Oklahoma, and offers a range of services including commercial banking, consumer banking, and wealth management.
Financial Performance
As of the third quarter of 2024, BOK Financial reported a net income of $140.0 million, translating to $2.18 per diluted share. This marks a decrease from the previous quarter where the net income was $163.7 million or $2.54 per diluted share. The company's Pre-Provision Net Revenue (PPNR) decreased by $43.7 million to $175.3 million compared to the second quarter of 2024.
| Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Income | $140.0 million | $163.7 million |
| Earnings per Diluted Share | $2.18 | $2.54 |
| PPNR | $175.3 million | $219.0 million |
Revenue Breakdown
For the third quarter of 2024, BOK Financial's net interest income totaled $308.1 million, an increase of $12.1 million over the prior quarter. The net interest margin improved to 2.68% from 2.56%. This increase was attributed to higher yields on the available-for-sale securities portfolio and increased loan fees.
Fees and commissions revenue for the same period amounted to $202.5 million, marking an increase of $2.5 million from the previous quarter. The growth was supported by higher transaction card revenue.
| Revenue Source | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Interest Income | $308.1 million | $296.0 million |
| Fees and Commissions | $202.5 million | $200.0 million |
Loan and Deposit Balances
As of September 30, 2024, BOK Financial reported total outstanding loan balances of $24.0 billion, reflecting a decrease of $569 million from June 30, 2024. The average loan balances decreased by $80 million to $24.3 billion.
Period-end deposits were reported at $37.2 billion, an increase of $985 million over June 30, 2024. The loan-to-deposit ratio stood at 64% as of September 30, 2024.
| Metric | Value |
|---|---|
| Outstanding Loan Balances | $24.0 billion |
| Average Loan Balances | $24.3 billion |
| Period-end Deposits | $37.2 billion |
| Loan-to-Deposit Ratio | 64% |
Credit Quality
The provision for credit losses for the third quarter of 2024 was $2.0 million, indicating strong credit quality and net loan paydowns. The combined allowance for credit losses totaled $332 million, representing 1.39% of outstanding loans.
Nonperforming assets not guaranteed by U.S. government agencies amounted to $80 million, a decrease of $6.0 million compared to June 30, 2024.
| Credit Quality Metric | Value |
|---|---|
| Provision for Credit Losses | $2.0 million |
| Combined Allowance for Credit Losses | $332 million |
| Nonperforming Assets | $80 million |
Operating Expenses
Other operating expenses for the third quarter of 2024 totaled $341.0 million, an increase of $4.3 million from the previous quarter. Personnel expenses rose by $15.7 million, driven primarily by higher incentive compensation.
| Expense Type | Q3 2024 | Q2 2024 |
|---|---|---|
| Other Operating Expenses | $341.0 million | $336.7 million |
| Personnel Expenses | $206.8 million | $191.1 million |
Assets Under Management
As of September 30, 2024, BOK Financial reported total assets under management or administration of $110.7 billion, which increased by $3.2 billion from June 30, 2024.
| Metric | Value |
|---|---|
| Assets Under Management | $110.7 billion |
Capital Management
At September 30, 2024, BOK Financial's equity capital was $5.6 billion, an increase of $383 million from the previous quarter. The tangible common equity ratio was 9.22% at the end of the third quarter.
| Capital Metrics | Value |
|---|---|
| Equity Capital | $5.6 billion |
| Tangible Common Equity Ratio | 9.22% |
How BOK Financial Corporation (BOKF) Makes Money
Net Interest Income
BOK Financial Corporation generates a substantial portion of its revenue from net interest income. For the third quarter of 2024, net interest income totaled $308.1 million, representing an increase of $12.1 million from the previous quarter. The net interest margin was 2.68% for the third quarter of 2024, up from 2.56% in the second quarter of 2024.
Fees and Commissions Revenue
In addition to net interest income, BOKF earns significant fees and commissions. For the third quarter of 2024, fees and commissions revenue amounted to $202.5 million, which was an increase of $2.5 million from the prior quarter. This revenue includes:
- Transaction card revenue: $28.5 million
- Fiduciary and asset management revenue: $57.4 million
- Deposit service charges: $30.5 million
- Mortgage banking revenue: $18.4 million
- Brokerage and trading revenue: $50.4 million
Other Gains
BOKF also realizes gains from various investment activities. In the third quarter of 2024, other gains, net, totaled $13.1 million, a significant decrease from $57.4 million in the previous quarter. This included:
- Gains on investments related to deferred compensation: $3.8 million
- Gains on merchant banking investments: $5.0 million
Operating Expenses
The company’s operating expenses impact its profitability. As of September 30, 2024, total other operating expenses were $341.0 million, an increase of $4.3 million from the previous quarter. Personnel expenses increased by $15.7 million due to higher compensation and incentive pay.
Loan Portfolio
BOKF's loan portfolio is a critical aspect of its revenue generation. As of September 30, 2024, the period-end outstanding loan balances totaled $24.0 billion, a decrease of $569 million compared to June 30, 2024. Average loan balances decreased by $80 million to $24.3 billion.
| Financial Metric | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Net Interest Income | $308.1 million | $296.0 million | +$12.1 million |
| Net Interest Margin | 2.68% | 2.56% | +0.12% |
| Fees and Commissions Revenue | $202.5 million | $200.0 million | +$2.5 million |
| Other Gains, Net | $13.1 million | $57.4 million | - $44.3 million |
| Total Operating Expenses | $341.0 million | $336.7 million | +$4.3 million |
| Outstanding Loan Balances | $24.0 billion | $24.6 billion | - $569 million |
Deposits and Funding Sources
BOKF's total deposits as of September 30, 2024, amounted to $37.2 billion, an increase of $985 million from June 30, 2024. The average deposits increased by $1.1 billion during this period. The loan-to-deposit ratio was 64% at the end of September 2024, a decrease from 68% in the prior quarter.
Provision for Credit Losses
The provision for credit losses in the third quarter of 2024 was $2.0 million, reflecting continued strong credit quality. The combined allowance for credit losses totaled $332 million, or 1.39% of outstanding loans.
Capital Ratios
BOKF's capital ratios as of September 30, 2024, were as follows:
- Common Equity Tier 1 Capital Ratio: 12.73%
- Tier 1 Capital Ratio: 12.74%
- Total Capital Ratio: 13.91%
- Leverage Ratio: 9.67%
Recent Financial Performance
For the third quarter of 2024, BOKF reported a net income of $140.0 million, or $2.18 per diluted share, compared to $163.7 million, or $2.54 per diluted share in the second quarter of 2024. The decrease reflects the impact of lower other gains and higher operating expenses.
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Article updated on 8 Nov 2024
Resources:
- BOK Financial Corporation (BOKF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BOK Financial Corporation (BOKF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BOK Financial Corporation (BOKF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.