BOK Financial Corporation’s BOKF fourth-quarter 2024 adjusted earnings per share (EPS) of $2.12 beat the Zacks Consensus Estimate of $1.97. The bottom line increased from earnings per share of $1.26 a year ago.

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For 2024, adjusted EPS was $8.14, which beat the Zacks Consensus Estimate of $8.07. This compares favorably with $8.02 reported in the year-ago quarter.

The results benefited from higher loans and deposit balances. An increase in net interest revenues and total fees and commissions supports top-line growth. A decline in provisions and expenses was another positive. 

Net income attributable to shareholders was $136.2 million, up 64.9% year over year.

For 2024, the company reported net income available to its common shareholders of $523.6 million, which decreased 1.4% year over year.

BOKF’s Revenues Rise & Expenses Fall

Quarterly net revenues of $523.1 million (net interest revenues and total other operating revenues) moved up 5.5% year over year. The top line surpassed the Zacks Consensus Estimate of $519.2 million.    

Full-year revenues aggregated to $2.03 billion, which increased nearly 1% year over year. The top line matched the Zacks Consensus Estimate. 

Net interest revenues were $313 million, up 5.5% year over year. The net interest margin expanded 11 basis points to 2.75%.

Total fees and commissions were $206.9 million, up 5.2% year over year. The upside was driven by higher fiduciary and asset management revenues, deposit service charges and fees and mortgage banking revenues.

Total other operating expenses were $347.7 million, down 9.5% year over year. This decline mainly resulted from lower FDIC special assessment charges.

The efficiency ratio rose to 65.61% from the prior year’s 71.62%. A fall in the efficiency ratio indicates a rise in profitability.

BOK Financial’s Loans and Deposits Rise

As of Dec. 31, 2024, total loans were $24.1 billion, up marginally from the prior quarter. Total deposits rose 2.6% sequentially to $38.2 billion.

BOKF Credit Quality Improves

Non-performing assets were $49 million or 0.20% of outstanding loans and repossessed assets as of Dec. 31, 2024, which decreased significantly from $148.3 million or 0.62% in the prior-year quarter.

The company recorded nil provisions for credit losses compared with $6 million recorded in the prior-year quarter.

The company recorded net charge-offs of $528 thousand, down from $4.1 million in the year-ago quarter.

The allowance for loan losses was 1.16% of outstanding loans as of Dec. 31, 2024, which remained flat from the year-ago quarter.

BOKF Capital Ratios & Profitability Ratios Improve

As of Dec. 31, 2024, the common equity Tier 1 capital ratio was 13.03%, which increased from 12.06% as of Dec. 31, 2023. The tier 1 capital ratio and total capital ratio were 13.04% and 14.21% compared with 12.07% and 13.16%, respectively, as of Dec. 31, 2023.

The leverage ratio was 9.97%, which rose from 9.45% as of Dec. 31, 2023. Return on average equity was 9.71%, up from the year-earlier quarter’s 6.64%. Return on average assets was 1.07%, up from 0.66% in the year-ago quarter.

Our View on BOKF

BOK Financial’s solid loan and deposit balance will continue to support its top-line growth. Declining provisions support the company’s financials. However, a tough operating backdrop remains a concern.

BOK Financial Corporation Price, Consensus and EPS Surprise

BOK Financial Corporation price-consensus-eps-surprise-chart | BOK Financial Corporation Quote

Currently, BOK Financial carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Banks

First Horizon Corporation’s FHN fourth-quarter 2024 adjusted earnings per share (excluding notable items) of 43 cents surpassed the Zacks Consensus Estimate of 38 cents. This compares favorably with 32 cents reported in the year-ago quarter.

FHN’s results benefited from a rise in NII and a decline in expenses. Also, lower provisions were another positive. However, a fall in fee income and a deteriorating capital position were major headwinds.

Synovus Financial Corp. SNV reported fourth-quarter 2024 adjusted earnings per share of $1.25, which surpassed the Zacks Consensus Estimate of $1.16. This compares with earnings of 80 cents per share a year ago.

SNV’s results benefited from strong year-over-year growth in non-interest revenues, a rise in NII, and a fall in expenses and provisions for credit losses. Also, improving deposit balances was a tailwind. However, a rise in non-performing loans was a major headwind.

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