BOK Financial Corporation (BOKF) functions as the holding company for its primary banking subsidiary, BOKF, NA, delivering a comprehensive suite of financial ...
BOK Financial Corporation (BOKF) operates as a holding company for its primary banking subsidiary, BOKF, NA, providing a broad range of financial products and services. Founded in 1910 as Exchange National Bank of Tulsa, the company has grown to become a significant regional financial institution with $53 billion in assets. ...BOK Financial Corporation (BOKF) operates as a holding company for its primary banking subsidiary, BOKF, NA, providing a broad range of financial products and services. Founded in 1910 as Exchange National Bank of Tulsa, the company has grown to become a significant regional financial institution with $53 billion in assets. Its operations span eight states, including Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and parts of Kansas and Missouri. The company is strategically organized into three divisions: Commercial Banking, which serves small to large enterprises with corporate lending, treasury management, and risk management, and operates the TransFund EFT network; Consumer Banking, which offers deposit accounts, loans, and mortgage services to individuals and small businesses; and Wealth Management, which provides fiduciary services, private banking, insurance, and investment advisory, along with brokerage and trading activities in mortgage-backed securities and municipal bonds. BOK Financial also offers a variety of loan products, including commercial loans for working capital, equipment, expansion, and acquisition, as well as commercial real estate and residential mortgages. Customers benefit from modern banking conveniences such as ATMs, call centers, and online/mobile platforms. As of December 31, 2021, the company employed over 5,000 people and operated a TransFund ATM network with 2,593 locations. Key financial metrics show a market cap of approximately $8.74 billion, a price-to-earnings ratio of 13.5, and a dividend yield of 1.7%. The company is publicly traded on NASDAQ and has a strong presence in the regional banking sector, with a focus on energy, real estate, healthcare, and retirement industries.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.3B
-1.1%
+6.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$578.0M
+10.4%
+13.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+63.7%
+11.7%
+0.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+21.4%
+7.8%
+3.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+17.4%
+11.6%
+6.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$739.6M
-41.2%
+1421.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+22.2%
-40.6%
+1335.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
78.3%
-2.5%
-28.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.17x
-54.5%
-94.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to BOK Financial Corporation's Second Quarter 26 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question during this time, simply press star followed by the 1 in your telephone keypad. If you would like to withdraw your question. As a reminder, this conference is being recorded. I would now like to turn the presentation over to Heather King, Director of Investor Relations for BOK Financial Corporation. Please proceed.
Heather King: Good afternoon, and thank you for joining our discussion of BOK Financial. Second quarter 26 financial results. Our CEO, Stacy C. Kymes, will provide opening comments and cover the loan portfolio, and related credit metrics. Scott Bradley Grauer, Executive Vice President of Wealth Management, will cover our fee-based results. And our CFO, Martin E. Grunst, will then discuss financial performance for the quarter. As well as our forward guidance. Slide presentation and press release are available on our website at bokf.com. We refer you to the disclaimers on Slide 2 regarding any forward looking statements made during this call. I will now turn the call over to Stacy C. Kymes, who will begin on Slide 4.
Stacy C. Kymes: Thank you, Heather. We appreciate you joining the call this afternoon. We are pleased to report earnings of $176.5 million or EPS of $2.92 per diluted share for the second quarter. Adjusted for the net gain related to the exchange of the Visa Class B shares and a small amount of repositioning in the securities portfolio, earnings were $156.5 million or $2.59 per share. This was an excellent quarter and 1 that reflects how we are positioning the franchise for continued growth. We delivered strong results, including record quarterly loan growth. Record quarterly fiduciary and asset management revenue, continued expense discipline, with credit remaining outstanding, During the quarter, total loans grew 3.4% sequentially or 13.7% on an annualized basis. This resulted in a quarterly increase of $896 million representing record new loan production in a single quarter of the company's history. Year over year, loans have grown an impressive 11.5%, Importantly, nearly 70% of year over year growth has been in our C&I portfolio. This reflects both the strength of our customer activity and the benefit of the investments we have made over time. Our fee-based businesses contributed meaningfully with record quarterly revenue in our fiduciary and asset management business. During the last call, we discussed aligning expenses with market opportunities and customer needs. Expenses this quarter remained well controlled. With total operating expenses excluding deferred compensation, being down slightly. Notably, this was achieved while making significant investments in talent during the quarter. Capital levels remain very strong, with tangible common equity at 9.6% …
