BOK Financial's Q4 2024: Record Earnings and Strong Shareholder Returns Amid Diverse Loan Growth

Earnings and Shareholder Return:
- BOK Financial reported earnings of $136.2 million or EPS of $2.12 for Q4, resulting in earnings of $523.6 million or EPS of $8.14 for the full year 2024.
- The return for shareholders was 27%, outpacing the KRX index return of 13%.
- This growth was attributed to strong loan growth, exceptional credit quality, and robust fee income contributions.

Loan Portfolio and Growth:
- Period-end loan balances increased 0.5% linked quarter, with commercial loan balances growing 1%, and loans to individuals rising 2.7%, while commercial real-estate decreased 2.5%.
- Core C&I loans grew 2.7% linked quarter, driven by a focus on Texas market expansion, with C&I loan growth reaching 8.1% year-over-year.
- The growth was supported by economic conditions in their markets and disciplined credit management.

Net Interest Income and Margin:
- Net interest income was up $4.9 million, with a core net interest margin expansion of 7 basis points, driven by securities portfolio reinvestment and fixed-rate loan repricing.
- Interest-bearing deposit growth and deposit repricing aligned with expectations, supporting margin expansion.
- The strategic capture of deposit beta and repricing flexibility were key factors in achieving these results.

Credit Quality and Fee Income:
- The credit performance of the loan portfolio remained exceptional, with an annualized net charge-off rate of 5 basis points and minimal net charge-offs of $528,000 in the quarter.
- Fee income accounted for 40% of revenue, contributing significantly to overall financial results.
- Strong trading fees, mortgage banking, and consistent asset management revenue growth highlighted the resilience of fee income segments.