- Earnings call transcript Q3 2022

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Operator

I would now like to turn the conference over to Steven Nell, Chief Financial Officer for BOK Financial Corporation. Please proceed.

Steven Nell

Good morning, and thanks for joining us. Today, our CEO, Stacy Kymes, will provide opening comments; Marc Maun, Executive Vice President for Regional Banking, will cover our loan portfolio and related credit metrics; Scott Grauer, Executive Vice President of Wealth Management, will cover our fee-based results; and then I'll provide details regarding key financial metrics. PDFs of the slide presentation and third quarter press release are available on our Web site at bokf.com. the make Slide during to forward-looking regarding you we statements the refer disclaimers X on any We call. I'll to now Stacy over Kymes. turn the call

Stacy Kymes

us $X.XX third quarter diverse Thank discuss quarter on very net Steven. Good strong $XXX And that share. third for you, earnings million Results was or another morning. Slide X, our BOK diluted mix. financial quarter joining Financial's income results. per Starting demonstrates thanks to reflected

as our Bank's as both from linked the to sheet net rates quarter expansion trailing continue third negative The earnings loans, third fee asset the third XXXX, history margin responded $XX during the in accordingly. of loan term significant quarter and of our quarter and the sensitive interest second grew rise benefited balance million ranks revenue and we income increased core Pre-provision only highest experienced had loss quarters provisions. diverse base. Short which

linked is fee Our due income net interest conditions, quarter for trading loans. quarter weighted variable increased in set portfolio heavily took loan linked Fee municipals. favorable banking quarterly as a to rate margin and of primarily market increased institutional record to XX basis income, advantage points investment that

the asset in to economic Our we and outlook. of recognition trends reserve good this in certainty did unsustainably our but credit quality remain add quarter loss growth credit the less loan

quarter X.X% low. grow quarter, loan X, linked Turning commercial unfunded up rates linked or Slide period estate, to with utilization still billion million the balances end with $X.X loan to driver. $XXX real core continue commitments Overall, primary increased

expectations decrease of or this the Reserve to interest short rapid of were Federal to While balances. that high These or move than quarter pre-pandemic with actions average of deposits saw compared remain our all better a X% even to rates in consistent declines given term bearing the virtually higher. levels, billion $X.X continued we

from to quarter last The XX.X% ratio quarter. deposit loan increased to XX.X% third

market the equities, were a down of our I'll flat $XX.X I'll comprise the Maun last on impact and relatively Marc. billion administration management under by linked in provide the and at additional session. credit are approximately to which more compared before driven X.X% or Assets portfolio quarter will total. third on But the Marc metrics the review call loan over detail. Q&A results now turn to perspective starting year,

Marc Maun

Thanks, Stacy.

increase loans by balances estate quarter traditionally by properties loan the multifamily this with linked increased core commercial end to loans loan in or $X core linked were business, Slide now lumpy billion grown services. residential strong $XXX results. linked flat from loans X% X.X% portfolio million declines real are commercial with relatively Total up industrial healthcare of $XXX Period X.X%. increase by facilities. energy year, growth X. quarter's by secured and in $XX.X Growth commitments were XX% Linked increased $XXX loans our quarter. and as Turning quarter. quarter Year and secured million general or trends billion, loan real have over million estate in C&I in evidenced in offset Unfunded

$XX average increased $XXX acute the resulting driven primarily our will commitments Unfunded year additional balances by estate utilization year over of commitments million Healthcare categories in have X.X% to So million with Services for million significant in have and new capacity lending drive compared year care hospital Energy over run have on services X.X% linked our commercial to the to XX% consistent linked increased XX% this Unfunded expect housing September real loans balance we senior over increased linked quarter, X% or to below we business quarter, balances unfunded businesses. levels, sectors. increased outstanding or still $XXX growth. increase $XXX pre-COVID increased quarter, which an quarter, or and X.X% XX%, quarter, decline linked increased Healthcare but just balances continued customer approximately and quarter, commitments year. utilization linked acquisition. so balance continue business growth. predicated million of it lowering but X.X% capacity X.X% any general combined sheet being general did rates slightly the XX, Utilization loan rate rates. more increased rest XXXX. creating balances decline without

XX% under last months, or billion with have of just Over just loans XX year-to-date XX% grown $X over the for growth annualized core XXXX.

as year expect that XXXX. momentum the continue to at loan up into we point pace, we've growth the we continue this don't we and believe out roll Although, close this will experienced to

turning X. Slide Now to

that good quarter, one primarily exceptionally in loans, third million You portfolio. due credit $XX the loan the loans in be can see two another across services. and in healthcare quality Non-accrual to continues increased to

million the growth continued assets strong levels considering remain our Reserve's at took continue and control seen supportable related losses a were to provision forecasts, credit challenging more criticized this expected loan outlook as changes and continued actions and decline economic preserves Our not and tangible the of equity $XX quarter, loan from to Federal percentage economic a last XX for in We loss primarily which reasonable years. a to inflation. in

our XX during have X range points. third of Net basis We dropped realized loss of and to the commercial an we peers to we the Given past during XX than that's estate history less of offs charge ratio should historic below only solid position past average slowdown believe in four which ahead. quarter. another outperformance capital credit quarters, positioned today, real our of to well trailing a points a the $XXX,XXX over quarters of far economic offs cycles, materialize substantially basis are credit net our charge allocated is

to credit outstanding Looking forward, $XXX quarter continue charge loans to allowance of net offs low. million The expect we for at was end. be or X.XX% combined losses

market their these reigning conditions uncertainty inflation. credit as this maintain migrate strong of continued or to forward. conditions Both continue, to Fed upward as slightly provisions we of due expect pursues to support loan expect to well in as We ratio going growth the as economic goal

I'll to Scott. Now, call the turn over

Scott Grauer

Marc. Thanks,

a Turning million to $XXX Trading took Slide million Total third as and conditions volatility. linked quarter market commissions of quarter the $XX increased $XX quarter, linked for and increased increase. XX. advantage market we fees were fees favorable million

Our but hedging commodity $XX a quarterly million, last actually and set at flat record, quarter linked record. new were activities slightly topping quarter's

results $X.X bank established banking banking with new increasing a Our investment activities our investment wide million, fees led to also municipal by from record segment. $XX quarter million record

quarter the timing, Asset of Fiduciary another Management their Commercial a increase. $XXX,XXX investment banking and our activities diversified Wealth linked in relatively were provide our lumpy revenues. While source fees of segments and from combination solid with flat

seasonal short quarter waivers fees, by by a preparation in interest creating quarter linked Hill that increase in was second tax Cavanal included offset the rates. term driven The our funds, decline reduced fee

eliminated our have waivers. now all We fee of

assets in management linked Our equities. X% a quarter virtually or administration flat under quarter were decline despite billion, linked $XX at

management are mix current under equities, cash assets of XX% fixed XX% XX% alternatives. X% Our and income,

Our related manage from approximately relationship centric volatility. overdraft model fees Year-to-date, slightly needs serve program charges market Deposit and our charge clients' as product XX% deposit growth increased help to offering them our Consumer this consumer service today we primarily driven were service segment. of fees. with continues quarter

overdraft reduce production revenues approximately quarter volumes million fees million fees program our Mortgage those implementing with revenue combined per quarter. down the due was flat million in than by decline that to $X.X with in consumer are banking changes We $X.X higher increased Mortgage fourth quarter XX% to last quarter will and million $XX $X.X production margins. third year. narrowing servicing this quarter a linked are

I'll of sheet $X strategically months, XX to our servicing we've last million the billion dynamics Steven? turn now call $XX add highlight will approximately balance servicing the margin acquired quarter. for the revenue. to unpaid net annual of important items interest over the balances that During principle and Steven of

Steven Nell

Scott. you, Thank

Turning XX. to Slide

$XXX to to rates. Third $XX last quarter was increase as quarter. on loan million Interest XX yields. a the in yields increase largely point in million interest increased loans million, recent fees response increase in net short basis from interest Loan due our variable term revenue increased loans $XX rate repriced and a

the real Our a as loans the is increased basis on points, and balance year asset with income $XX less. on Total interest in yields repricing or our due increase increased due linked commercial estate the in order for expense securities $XX quarter, rate portfolio. basis bearing linked million on reinvestment million average $X our increased majority rates Interest of average sale and primarily sensitive yields primarily interest available of sheet portfolio higher to liabilities. higher point to trading commercial a XX

on in bearing interest declined expectations upward $XXX deposits $XXX by million a XX balances, rate related balances portfolio. compared with with earning $XXX assets loans fell sources. materially funding consistent all to deposits in decline increased this Average quarter. quarter. securities decrease to our significant basis term XX The current basis was margin into asset $X.X interest spread total offset that with we in trading given in effective the in of from million, billion. the the XX and rates. $X.X billion those quarter increase the driven bearing position was expectations given point interest X.XX%, non-interest expect a and point interest rates, benefit for increases by basis in Net With linked basis from net benefit capture term XXXX. short point revenue sensitive increase which last bearing increased While the Average further trend the our fourth million average average quarter increase increase and XX the Average points

up Slide experienced XXXX XXXX. rates quarter, relative Using increase parallel to XX. arising highlight environment cycle balance last We sheet our and the from rate gradually shift approximately position, similar to over performance to Turning as million. be or of during assuming the modeling, sensitive interest points third asset months of in our end hiking revenue rate X.XX% would further $XX a to our expect XXX basis net standard a XX to that

following benefit $XX XX total X.XX% months, Over million. the increases or the

end an would Asset flattening provide too see I'll basis points specific term rates very talk when strong. sensitivity Slide in long first margin. remains XXX scenario moment basis I where XXX a guidance net position XX months be that reduced while liquidity our increase can the our rates short XX, color interest increase On neutral points. for position in for more about forward a you approximately

million quarter. deposit to billion $X.X ratio the loan impact in this quarter deposits $XXX in Our due this a and loan June to XX.X% balances a XXth, from combined of XX.X% decrease increased total increase to at

to balance us positioned sufficient sheet well customer Our demand. liquidity loan future increasing on meet has

X market. at remains well above as strong were such per active a common average XX.X%, an price optimistically Our XXX,XXX capital we repurchasing again once position levels of shares open the With capital repurchases, threshold. with equity $XX.XX in well share strong of Tier share regulatory ratio with

repurchasing active in We during expect to shares fourth quarter. be the

expenses drives million linked cash occupancy total peer $X.X only million increased combined and fees forecasted professional utility $XX drivers. area in total is the increased sales expense market increase quarter-to-quarter. Non-personnel group to X.X% incentives related decline Slide compensation. charges XX. X.X% in move common Year-over-year results Linked comes Wealth personnel with due [spend] a fee around maintenance the professional increased increase Linked expenses seasonal $XX a and to quarter personnel primary X.X% and occupancy in influenced Commercial grew linked to to based of with with and from the increase with quarter valuations $XX increase annual while the million. that increased Turning segments. of strong Project can non-personnel. million These costs. annual share related quarter compared expense $X categories and also to expense quarter our based million increase and by related deferred are in results

months. met Given earnings on key drivers forecast for assumptions that or and the the XXXX, we’ll exceeded the for and balance that focus sheet have XX guidance identified we next we

formal of over do outperformance be digit upper ready progress quarters. for that more our are the couple to single level But given growth. loan assumptions think XXXX remains the key work us. helpful, assumptions of expect last not We I annualized We a currently following provide to in as for mid may earnings

from level the role Our and in geographic business footprint our plays other migration the remains high very cycle given this outperform of strong energy markets in and may footprint.

deposits and XX Federal loan Operating half X.XX% migrate diverse modestly pauses. of ratio could up of before of of deposits dependent basis 'XX base quarter to November revenue and in or forward second be quarter interest first declining a the the to strong operating Currently, margin between the when and our market a and while very reported 'XX countercyclical, some December betas. range the XX we have rate our is higher should deposit to The the expect was February modestly modeling and are even curve believe components assuming we amounts. X.XX%. XXXX stabilizing basis point in in and increase remain We We follow relatively demand before in third revenue margin but lag due a stable, core expect increase outlook. September the Reserve to and the net deposit XXXX, overtime. point We moderates are total effect a

the ratio with up We This expect XX% the five to over of but each period. efficiency next revenue expenses the in to at by driven not rise growth. mix the revenue changes or will allow below level down stay quarters

strong allowance of could less not Current is very reserve strong becomes and as level medium with our we maintain material Our expect a clear. change is does credit certain deterioration, above economic the more a the this and but asset outlook peers foreshadow economy. to quality

to Kymes repurchases. quarterly turn closing I'll our for the back Stacy call continue to expect We now commentary. share

Stacy Kymes

Thanks, Steven.

and Third earnings this of growth very quarter exciting excellent is Bank's how positioned are environment. for in the example model an results operating

We are base. our consistent asset line across balance experiencing loan sensitive sectors, our growth from quarterly business footprint as geographic benefit our and position, diverse as fee sheet well across

of trading broad volatility but commodities base Offering the selection focus our management producing beginning benefited our on are benefited line have our from year. a negative had we products related set conditions. various mortgage areas and our Markets term at to the significantly and impact business, revenue a interest under rates have assets benefit lending top We the but related growth our on has Rising positioned of to client is our short margin. negatively impacted market businesses.

to We likely stable Federal and term Bank. the drive inflation levels, is revenue strategy margin continues to than short increases their aggressive though Reserve expect unsustainable. to interest better further and rates, with fighting which be the continue it will further pre-pandemic expansion Credit very for quality

reserves of less believe continue our times. institutionally a certain in combined in as we the to credit above median maintain We allowance peers strong

expected a with outperform. trading diverse the Banks versus We credit discipline stage sector proven outcome to investing of should are in deposits a core thoughtful growth, meaningful the mix, are where banks strong in matter. business and

We are take in are well that, year. shift, questions. negatively, we With positioned, favorable Operator? your however, the coming economy pleased should or to the

Operator

Shaw question Instructions] Jared Fargo first [Operator with from Our comes Wells Securities.

Jared Shaw

what broadly money I the growth outlook. of then in think to, terms some and hearing the, from Maybe starting assumptions whether you in group with rates what the customers that whole desire your sentiment across and loan maybe and Can guess, even with more share this you the environment, guess, specifically I utilization for invest or more broadly, of you're that's new more on energy side? do

Steven Nell

both where well about me not were to utilizations we at terms something, We're free of we from at utilization, didn't seeing We're all, first the just Clearly, if Let next loan enhancement would of into perspective, in really months miss below factor all. changes loan still up. growth. try utilization pre-pandemic. to in XX significantly the guidance. follow we look in my as material accelerate broadly But how really address feel of thinking the and I were those, that

there's material higher loan rates even than for we estimated utilization up begin opportunity growth to if So what meaningfully. move moving

to what borrower heard relates about sentiment, I our versus you I financial tell a with time it in on my and customers. would terms remember you As in we're and media career, of different can't saw what talking the customer

about years. talk heard business it's I their optimistic them as Our footprint. are if in our many, about many customers that know I've don't

clearly is chain those chain I don't in higher a Denver better costs our higher are really it's of even higher But core business supply benefiting and the markets us. in getting Texas energy have a kind very, those sentiment issues. very Phoenix and core energy, energy know labor positive. seem piece as labor But They Mexico. Colorado, in from if borrower growth markets sustained supply Texas, are accommodate them for bit we with have and help are with be to Oklahoma prices fantastic price We their and able where think of or footprint growth I dealing and and margins that challenges. they to

what the shifting their a recessionary who believe sentiment a or there people a near businesses I running think our real versus in perhaps hear financial press would environment. So from ground every is are what us is have on day between markets recession we

Jared Shaw

are beta What the how the and factor example. you stable some you And as And on say then maybe mix, good shifting as of sort of margin. to when outlook? life stable through are guess, that outlook a I or stable, that assumptions around real we you beta into quarter that's look does as DDA, the percentage have saying the cycle of a now seen the dollars of at

Steven Nell

The we third. we percentage. may like your fourth entire expect deposits, there question latter staying are I base. little think bit been are around and attrition have the talking of we a of DDAs the XX% our demand stable. part a very I about deposit They just as in deposit did mean, of about deposits in quarter

XX% that XX%. be the quarter, play the I think in end cycle fourth year, XX%. betas feel out the that Deposit little will fourth the we higher what quarter. for maybe the at migrate probably a through third of quarter will towards They'll the -- or range were between somewhere maybe and like will XX% in the around

So in loan-to-deposit XX% to have you put this we got ratios. context, below XX% slightly

to we've we So be opportunistic want room to be. here if got

with betas will migrate, a levels say, certainly funding bit Our I little to we higher the need are great. would But market.

Stacy Kymes

loan our portfolio. betas on so been this understandably nature all the strong I betas have this in cycle, deposit loan our pretty but of is and think there variable focus given

to from costs we today. we level margin higher than September able we well move And for is as controlled were related much about the higher forward, are and are are margin move which We ended to as we we why we deposit to we the so a guide as XXXX. quarter did than our that as optimistic really into benefiting

Operator

Our from Brady Gailey next with is KBW. question

Brady Gailey

I the down the will to trading security think stable earning I do to loans look just wanted you portfolio, those or those those average some mean, Do to close continue down asset to be expect as have balances. and if start bond you you year-to-date. balances trend book trending somewhat but with grow? been

Steven Nell

some last Well, the maturity to part we shifted to that portfolio is of AFS held down, because but is quarter.

that So down. AFS seeing go really there. to what of maybe part I expect securities don't you're

I got with part of would fourth decent we've the portfolio grow think year. moving I fact, which opportunity In may spreads quarter pretty two serve a and actually mortgage We into that next purposes. bit, think

good more on get I as the end towards of perhaps to get bit would hike back portfolio, we spread some we the rate a but think that towards little use that we'd also migrate neutral cycle.

down trading portfolio, that. really the business. bit little average the on that talk On was But a but can Scott it margin's good about in

the talk little for that can about outlook business. for Scott bit the a So balances outlook and

Scott Grauer

I well. Steven think it summarized that

in ask we balances, our of the team really trading think has bid job maximizing our to think volatility able a were that spreads. stabilized -- desk, has great opportunities terms widened I done they've the of particularly day in I space, and day as on mortgage the

of set, results in. begin as kind of produce for waiting been So the lower settling market is kind to period settle to rates the balances have where institutional we've able there with

the for to of the settles I we right more think bit extent bit on into little advantage the Fed market days. opportunistic little what a see it's But that as that balances take a for is rates advantageous that's moves, little and there, a with a we So we'll the now think that that higher volatility on to we'll volatility outlook in settle various predictability us and out be bit. more maybe bit get the

Stacy Kymes

that Scott, has you of months. might a mean, comment, the I XX trading last also bit changed diversity the revenue over

Scott Grauer

it's total So desks, roughly seen total consistently revenue activity to our desk portfolio command side. clearly, now institutional backed inching the our continue mortgage generated revenues where to on municipal revenue securities when on trade up edging the in you our XX% at XX% look securities But from we've that at about of mix of mix. a our

we've all seen, across the and treasury for scale yields the activity So the we've as volumes of the there. taking seen treasury increase treasury reasons, And available investors are rates in and emergence obvious advantage market of the size itself.

evolve volumes fixed to the for and able mortgage to And the continued we've that side years. flows, and income sectors has lower has change. and market. been mix that spaces advantage in take and other we've dominated back Stacy other mix that of challenge as experienced mentioned, So pivot sector But in security as and

Brady Gailey

was And question on capital. then my second just

Your XX%. almost common equity tier one is

mind figure pointing capital. that to? So to there you quarter. that at a target guys Is one -- would a pace few fourth buybacks like trying more to material in you get us But equity purely the in down out have tier to next buybacks could I'm years? excess common just the you're continue for

Scott Grauer

really mean, that. grew I all $XX and growth, course, levels. million factors we still bought a of I There which really target we grow million into of and around loan this but capital could. had XX% paid a to go was don't earnings quarter. shooting happy that we're they that the the for was have of lot stock, supported $XX is dividend back I a think But We capital necessarily. of

levels. we very use us will that. which with in do. want So lot the a for if It that the to happy of happy buyback some I'm gives of room, future, we with I'm capital

So pretty we perspective. capital a from are staged well

Brady Gailey

little And then ratio, it on was finally points. up for a bit the X quarter me linked reserve just about basis up

continues economy expect do weaken to ratio you continue to the that kind to here, higher? potentially of trend As

Marc Maun

that primary at is the have economy for more downside going forecast becomes effect economic And asset while given exceptionally make level then to more positioned our in economy, maybe comfortable it in that if driver good. And set accordingly. think it's certainly of any difficult I case it more or a and quality the was on creates that some what might the a it growth would well will on feel uncertainty, very from say on the we issues monitor that unsustainable it might we an continues arise we reserve to viable with the that But size ratio. that. uncertainty the loan be we are but and deal

it we on So the depend see economic a what will bit in little outlook. I -- see wouldn't

Operator

Our next question Group. from with is Brett Rabatin Hovde

Brett Rabatin

I XQ. Can talk wanted to go a the you and through about just and back particular to about be? trading, second obviously just strong the for quarter think talk just personnel? fee in a -- about like like of how about compensation income you obviously the really and business how think that brokerage to thinking related maybe that a to sustainable might level And dropped in

Stacy Kymes

if Certainly, guidance But specifics of Steven you our they there can we from that would any Scott do indicate think we broadly the non-interest lots quarter-to-quarter. with provided around were what and is categories trying have. inside to of I discuss and revenue move

start you And But look at to. it's when easier categories difficult. total, in guide it a so guidance specific is on to to providing little

we strong third second had And on quarter great a non-interest quarter. revenue. so a We had

Steven And be think you in the revenue you band so discussed coming non-interest quarters. of I in that think that comments, really look a where that the we if gives his good could guidance at

Brett Rabatin

situation in really And had obviously quote quality, talked about asset comments, back a any the straight gas that was level are you impact then all? some actually level curious that issues Texas for it's things West where if a wanted natural trading Does happen. you I -- pipeline to Texas situation noticed with there I and go of do at you is gas at pristine. unsustainable you negative West think the with energy

Stacy Kymes

and customers good we -- not our mean, that always temporary program we had impact moves do market all. hedge with really us them have have I at have certainly No. those

Brett Rabatin

for to commentary I to expecting trying you're expecting purchases to the Does I'm you're sheet, the it be then balance And just kind me, around, balance and understood margin also from growth. make dynamic lastly from understand deposit wanted I of But the sure and like sounds some levels to here. loan securities fund stable of the do sheet basically the here.

to that sheets the in balance Is assessment? a sheet quarter, fair you balance but here. sounds expecting are it shrinkage like had third You from the grow

Steven Nell

I We're will keep think mean, go comment. your in that's a attrition what third. to happened deposits do going level. the to maybe be to fair similar of I not some the in back assessment. deposit I think fourth want to quarter, I deposits there

part through of the some will borrowing shrink. source, up We'll balance that tremendous liquidity which So sheet that make wholesale have there. we

I so grow loans. continue think we can And to

budget But portfolio think prepared mortgage I to there's add we and there. spread until some little on I'm we guidance bit. gain could grow decision not an that give do put to the that yet securities opportunity AFS we're AFS towards where a our together. back I think migrating some

on the move portfolio AFS, point, maybe there's the I opportunity time. to trading grow would So Adding to side to little higher say yes, balance sheet does an bit that probably with over continued a growth. loan Scott's

able sources fund growth. with will other So borrowing we be to than other very deposit effectively that

Brett Rabatin

environment. balance positioned sheet's better than seems certainly this your It like in most

So congrats on quarter. the

Operator

Our Jennifer Truist Demba with next Securities. question comes from

Jennifer Demba

within portfolio, any the issues. in supply thing had only any that offs maybe is the segments in quality if noting? anything chain think seeing worth or looks I'm are negative trends with companies migration seen I The wondering last I who've you're we've asset the at terrific. some quarter charge all mean, two

portfolio? you're what wondering your seeing in Just

Stacy Kymes

And problem fourth We outlook really We've our for quarter. overall off still the the in are but the here, off third quarter, in one isn't in systemic. one seeing there terms reduced migration. a much different the quarter we loans had nothing that of

think quite for some monitor to to been our we'll -- has time. disciplined credit it. we're So going We culture highly continue

go we recession, as it that to So better potential situated our withstand and of not losses. material customers see into one a are

anything with it see right systemic. certainly we're we're that's to But So we comfortable very now. occur see if it watching more

Operator

[Technical question Difficulty] next comes Our

Steven Nell

to cut-off the got We here Matt there, you question for and cut-off got Olney? operator. from you that. Rob. was I a have Matt, he Hey, are we think out a to reaching

Operator

additional question an the Olney coming gentlemen, with Please your we technical Stephens. proceed difficulty. have Ladies apologize line question. do and of Matt for with We

Matt Olney

circle And the When on Just the on the commissions and and back have clarify are the fees. I the few and to think slide assumptions. XQ, XQ be operating you want that a about revenues fee forecasts mentioned in interpreting range topics. the right? you should I you side, talking just Am to on the between

Steven Nell

correct. Yes, fees and That's commissions.

Matt Olney

more quarters. range that slide and quarters, says so five in but quarter, And the Is not fourth of just the I kind think that next fees next that or less five right? commissions

Steven Nell

that harder But that out to range. Yes, comfortable in with result, result a we go I third second mean, certainly, are far. that somewhere little it's quarter quarter

of If all you businesses, composition that look our fee neighborhood. we of achieve feel can somewhere like in we at

are So that's trying there. what say we to

Matt Olney

forecast fees big quarters? it, tough the few last hot those lines get those over been quarters. more very of has some it's And recently. one the doing driver of that's The strong Any have last running of any syndication change lines. strategy so I of specifically strong few to or been pretty why been

Marc Maun

we across change increased us given lines really And opportunity somewhat No, top last so. it's undertaken and a of to continue think the all effort to business the for effort I maturing a do of and the that It's that build strategy. have focus business it's has of mind a the our we to years. don't several expect

Steven Nell

to have has energy how really in and Yes, I widespread. Marc an as think the lead right. helped our marketplace the it's how been deals ability business. It's this energy our lender And strong larger matured a viewed has but we growth there is we Clearly, team. are presence us, very and

Matt Olney

bit quite Could last third on yields spreads changing be we could look It remain higher definitely quarter you the then see a and the the Nell, AFS. there? moving as in more even that towards gears towards And portfolio saw quarter. quarter on improvement the sounds securities us like pointed Steven those we favorable. fourth we

Steven Nell

yes. could, We

We or dollars a million those $XXX are some $XXX a million million of reinvesting we $XXX getting month. Currently, month, are at flow cash of so to X%.

yield see higher that fourth So the you definitely could quarter. migrate portfolio in

Matt Olney

could that the what fourth level going back was the third think out funding quarter. I down I heard you quarter, but deposit you to then And think in were side, the balances in say

guess, And wholesale so right? more the the on incremental that funding brokerage Is side. would here, be I

Steven Nell

down I fourth quarter. that balances our of just commercial will XX% deposits believe happen. the the deposit deposits think on side. Well, move in are still will I in the

will between wealth. pretty will of off our with evenly rates those be higher more be to I'm And opportunity XX% something consumer are sheet. coming, other there there and -- The to split for some move balance sure clients,

on as So on of company. turn growth towards have side, the towards sheet both turn of with we and that other we'll which a security funding, abundance an loan capacity we’ll balance sources

Operator

reached of Nell call and end the now back to I'd closing answer question We’ve like session. over the the turn comments. for to Steven

Steven Nell

Well, joining everyone for thanks us. again

at me further XXX-XXXX at you day. If great you (XXX) can have you. Thank call email or a Everyone any questions, ir@bokf.com. have

Operator

conference. today's This concludes

your may and You for we disconnect time, at lines this thank your participation. you

BOK Financial (BOKF) 26 Oct 222022 Q3 Earnings call transcript