BOK Financial Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.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/YQuarterly 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 RiseAs 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 BagNon-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 ImproveAs 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.Our View on BOKFBOK Financial is poised to benefit from a solid deposit balance. Declining provisions support the company’s financials. However, an increase in operating expenses is a near-term concern.BOK Financial Corporation Price, Consensus and EPS Surprise  BOK Financial Corporation price-consensus-eps-surprise-chart | BOK Financial Corporation QuoteCurrently, BOK Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksFirst Horizon Corporation's FHN third-quarter adjusted earnings per share (excluding notable items) of 42 cents surpassed the Zacks Consensus Estimate of 38 cents. The figure increased 55.6% year over year.FHN’s results benefited from rises in NII and non-interest income. An increase in deposits and lower provisions were other positives. However, a rise in expenses and a fall in loan balances were major headwinds.Synovus Financial Corp. SNV reported third-quarter 2024 adjusted earnings per share of $1.23, which surpassed the Zacks Consensus Estimate of $1.09. The reported figure compared favorably with earnings of 84 cents a year ago.Results benefited from strong growth in non-interest revenues (NIR), a fall in expenses and provisions for credit losses. Improving loans and deposit balance was a tailwind. However, a decline in NII and a rise in non-performing loans were major headwinds.Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. 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