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1. Company Snapshot

1.a. Company Description

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri.It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management.The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network.


The Consumer Banking segment provides lending and deposit services to small business customers through consumer branch network; and engages in the mortgage loan origination and servicing activities.The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities.The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans.


In addition, it offers commercial real estate loans for the construction of buildings or other enhancements to real estate and property held by borrowers for investment purposes; and residential mortgage and personal loans.Further, the company provides automated teller machine (ATM), call center, and Internet and mobile banking services.As of December 31, 2021, it operated 2,593 TransFund ATM locations.


The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on BOKF

Negative drivers behind BOK Financial Corporation's recent 3-month performance include rising expenses, which are concerning despite the company's strong loan and deposit balances. The bank's net interest income has decreased, and loan loss provisions have remained minimal. Additionally, the company's perception as an energy-focused lender has been countered by substantial investments in safer securities, but this has not fully offset the decline in net interest income.

1.c. Company Highlights

2. BOK Financial Corporation Delivers Strong Q2 Earnings with EPS Beat and Robust Loan Growth

BOK Financial Corporation reported a standout second quarter, with earnings of $140 million or $2.19 per diluted share, surpassing consensus estimates of $1.98. This marks a significant beat, driven by strong loan growth and fee income performance. The company's loan portfolio expanded 2.5% during the quarter, with notable contributions from commercial real estate, core C&I, and individual loans. While the core C&I portfolio grew 1.1%, the specialty lending segment saw a 1.6% decline. Fee income emerged as a bright spot, rising 7.2% sequentially, with several lines achieving record quarterly results. Net interest income also grew for the fifth consecutive quarter, supported by margin expansion.

Publication Date: Jul -23

📋 Highlights
  • Record Earnings: - Reported $140 million in earnings or $2.19 per diluted share for Q2.
  • Loan Portfolio Growth: - Loan portfolio grew 2.5% this quarter, driven by commercial real estate and core C&I loans.
  • Fee Income Growth: - Fee income rose 7.2% sequentially, with record results in several business lines.
  • Strong Capital Levels: - TCE reached 9.6% and CET1 reached 13.6%, indicating robust capital strength.
  • New Mortgage Finance Business: - Launched a mortgage finance line with $0.5 billion in expected commitments by year-end.

Loan Portfolio and Fee Income Momentum

The company's loan growth was broadly diversified, with commercial real estate and core C&I leading the charge. The launch of a new mortgage finance line of business is expected to further bolster loan growth, with commitments projected to reach $500 million by year-end. Fee income momentum was another highlight, with deposit service charges, asset management, and investment banking growing 11%, 6%, and 8% year-over-year, respectively. This strong performance underscores the company's ability to diversify revenue streams and offset potential headwinds in net interest income.

Net Interest Margin and Capital Position

BOK Financial's net interest margin expanded by 2 basis points, driven by fixed asset repricing and disciplined deposit pricing. The company's capital position remains robust, with a Tangible Common Equity (TCE) ratio of 9.6% and a CET1 ratio of 13.6%. These levels provide a strong foundation for future growth and shareholder returns. The company's loan-to-deposit ratio of below 65% also highlights its prudent balance sheet management and liquidity position.

Management Commentary and Future Outlook

CEO Steve Nell commented, "Our strong second-quarter results reflect the resilience of our diversified business model and the strength of our team." The company remains optimistic about its full-year loan growth projections, targeting mid- to upper-single-digit growth, driven by a robust pipeline in C&I and CRE. The energy loan portfolio, which saw a year-over-year decline, is expected to stabilize, further supporting loan growth. Management also emphasized the importance of its fee businesses, which are poised to continue their upward trajectory.

Valuation and Risk Considerations

From a valuation perspective, BOK Financial trades at a Price-to-Tangible Book Value (P/TBV) of 1.14, slightly below its historical average, suggesting moderate upside potential. The stock's dividend yield of 2.13% offers an attractive return for income-focused investors. While the competitive environment and some spread compression in C&I loans pose risks, the company's diversified revenue streams and strong credit quality provide a cushion against these headwinds. The company's ROE of 9.39% and ROIC of 11.11% further highlight its efficient operations and ability to generate strong returns for shareholders.

3. NewsRoom

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FHN vs. BOKF: Which Bank Stock Has Better Upside Potential?

Dec -04

Source: zacks.com

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California Business Bank (OTCMKTS:CABB) & BOK Financial (NASDAQ:BOKF) Financial Survey

Dec -02

Source: defenseworld.net

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BOK Financial Corporation $BOKF Shares Sold by Ensign Peak Advisors Inc

Dec -01

Source: defenseworld.net

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BOK Financial Corporation $BOKF Shares Purchased by Connor Clark & Lunn Investment Management Ltd.

Nov -17

Source: defenseworld.net

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Envestnet Asset Management Inc. Increases Stock Position in BOK Financial Corporation $BOKF

Nov -17

Source: defenseworld.net

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Bank of New York Mellon Corp Has $18.29 Million Position in BOK Financial Corporation $BOKF

Nov -17

Source: defenseworld.net

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BOK Financial Corporation $BOKF Shares Acquired by Vanguard Personalized Indexing Management LLC

Oct -24

Source: defenseworld.net

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BOK Financial Corporation (BOKF) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.10%)

6. Segments

Commercial

Expected Growth: 7%

BOK Financial Corporation's 7% commercial growth is driven by a strong loan portfolio, fueled by a robust Oklahoma economy, increasing energy sector activity, and strategic acquisitions. Additionally, the company's diversified revenue streams, efficient cost management, and solid credit quality contribute to its growth momentum.

Wealth Management

Expected Growth: 5%

BOK Financial Corporation's Wealth Management segment growth is driven by increasing demand for investment management services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digital transformation, robust risk management, and strong relationships with clients contribute to its 5% growth rate.

Consumer

Expected Growth: 4%

The 4% growth of Consumer segment at BOK Financial Corporation is driven by increasing consumer spending, low unemployment rates, and rising wages. Additionally, the segment benefits from the company's strategic expansion into new markets, digital banking initiatives, and a strong brand reputation, leading to increased customer acquisition and retention.

Funds Management and Other

Expected Growth: 3%

BOK Financial Corporation's 3% growth in Funds Management and Other is driven by increasing assets under management, expansion of wealth management services, and strategic acquisitions. Additionally, growth in treasury services and mortgage banking revenue, coupled with a rise in commercial loan activity, contribute to the segment's growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including loans, credit lines, and cash management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including brokerage, trust, and investment management.

TransPay

Offers payment processing and merchant services, including credit card processing and online payment solutions.

Cattle Lending

Provides financing solutions to ranchers and farmers, including livestock and agricultural loans.

Energy Lending

Offers financing solutions to energy companies, including oil and gas exploration and production loans.

Mortgage Banking

Provides mortgage lending services, including residential and commercial mortgage loans.

8. BOK Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

BOK Financial Corporation operates in a highly competitive industry, and customers have various alternatives for their financial needs. However, the company's strong brand reputation and diverse product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

BOK Financial Corporation's customers have significant bargaining power due to the availability of alternative financial institutions and online banking services. This forces the company to maintain competitive pricing and high-quality services to retain customers.

Bargaining Power Of Suppliers

BOK Financial Corporation has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The threat of new entrants in the banking industry is low due to significant regulatory barriers and high capital requirements. BOK Financial Corporation's established brand and large customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. BOK Financial Corporation faces intense rivalry from other banks and financial institutions, which drives innovation and competitive pricing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.49%
Debt Cost 9.93%
Equity Weight 36.51%
Equity Cost 9.93%
WACC 9.93%
Leverage 173.92%

11. Quality Control: BOK Financial Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BancFirst

A-Score: 6.8/10

Value: 7.3

Growth: 7.0

Quality: 7.1

Yield: 4.0

Momentum: 7.5

Volatility: 7.7

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BOK Financial

A-Score: 6.4/10

Value: 7.0

Growth: 7.4

Quality: 6.6

Yield: 4.0

Momentum: 5.0

Volatility: 8.3

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Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

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Commerce Bancshares

A-Score: 6.1/10

Value: 5.2

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

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Associated Banc

A-Score: 6.0/10

Value: 5.1

Growth: 4.8

Quality: 4.3

Yield: 8.0

Momentum: 7.0

Volatility: 7.0

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ServisFirst Bank

A-Score: 5.2/10

Value: 4.2

Growth: 7.1

Quality: 6.4

Yield: 3.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

115.98$

Current Price

115.98$

Potential

-0.00%

Expected Cash-Flows