BOKF - Earnings call 3 2023 | BOK Financial Corporation

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Operator

Greetings, and welcome to BOK Financial Corporation Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Marty Grunst, Chief Financial Officer for BOK Financial Corporation. Thank you, Mr. begin. may you Grunst,

Martin Grunst

and our thank provide joining Executive opening Banking, loan for and Grauer, and CEO, Vice Executive Vice Today, Stacy Regional President portfolio then and are our Management, our cover PDF forward will Kymes, comments; will credit will of fee-based at third for release performance website you the results. morning, metrics; us. our Wealth financial Scott on for our the presentation quarter guidance. available press of I President slide cover related discuss Good Marc bokf.com. quarter Maun, and

you during Slide X the refer Stacy the regarding make will the I to we turn now statements We disclaimers call. call to any on over forward-looking Kymes.

Stacy Kymes

us financial third BOK third joining to or Slide $XXX X, Good discuss results. net on per morning, quarter income was $X.XX quarter million, thanks Financial's Starting share. and diluted for

earnings, which noninterest our allows variety team quarter by well in climates. diverse had of with revenue driven interest a business model, of business revenues to balances perform solid another us Our and prudently

revenue revenues total XX% of quarter. the Fee and commission were for

This record fees, investment derivative last which offset group public quarter's corporate new banking record materially fees. and quarter, established our for high finance

increased industrial economic commercial focus X% for core on have we up as Additionally, to from continue our a growth, vitality given last were and and core take of almost opportunities strength. X%. our loans liquidity Total the advantage of year we footprint geographic loans capital and

will we banking sales both drive trading the of income addition our confident We and shareholder are value. with poised Memphis, in a to model long-term into [indiscernible] full-service the introduce office fixed are

during real increased with and in growth both or linked grow end deposits the to X.X% commercial X. period million quarter. Turning $XXX Both average to Period-end and balances continued C&I Slide loan estate. quarter

Our as to growth end increased quarter just XX.X% growth. loan the ratio deposit slightly the of at outpaced loan-to-deposit

increase the Our quarter. did cost for in deposits

did slow. However, the pace

to X.XX%. activities continues core the trading interest detail trading reported expanding with will our later, be As activity at diluted this net margin the Marty our excluding quarter by margin,

Although seeing loan it tightens increasing as quarters costs a high. be to of footprint in signs credit we our are take remain spreads few and will unclear, deposit early

increased the our million peer noninterest at a in outstanding net $XXX linked net interest for the Credit of of quality quarter in pressure resulted efficiency XX%, more margin resulting interest and group. still have in from us X.XX% on which funding typical decline which costs The million mix revenue. given $XX ratio above is is quarter an strong, loans we a our combined median or of notably above end, of is revenue, reserve

now repurchased review but quarter in over our more we detail. XXX,XXX Maun call shares session, the repurchase before long-term him. company I'll starting provide and results turn credit the confidence the I'll and to reflect Q&A additional to portfolio loan perspective Finally, attractive the on the this in will our valuations. Marc metrics

Marc Maun

Stacy. Thanks,

or loans X%. have or $XX.X a at Turning X.X% to increased have quarter balances with that commitments modest XX% with X.X% linked growth $XXX XXXX, estate billion of XX, $XXX X.X% up growth X.X% increased were loans Period-end year-over-year $XXX period. and December or CRE or same million to Compared grown quarter annualized year-over-year. million during linked billion, Commercial increased linked Slide X.X% quarter. C&I Total million $X.X up real loans X.

and at X.X% is since loan decline a offset increase office linked total or million million quarter, balance. secured June office XX.X% of outstanding by loans million X% is point or was properties with an or quarter. quarter grew its $XXX was XXXX quarter by facilities. only million driven in by of outstanding Industrial which linked X.X% $XX facility $XXX loans in The this $XX lowest Growth linked primarily loans multifamily

predominantly was million $XXX of industrial growth multifamily driven CRE and by year-over-year loans. The

We upper balances total the outstanding limit. to presently of CRE of an loans fund and We at that commitment limit as Tier have construction we're reserves in modest of end CRE growth and up. XXX% capital do X internal expect continued

XX, balances, our a loan represented As balances well XX% of CRE total September peers. of outstanding below ratio

Combined core total loans million grown by of are our X.X% X.X% or or with linked senior general These portfolio. and year-over-year, increased quarter $XX or care million loan and $XXX growth have linked $XXX million increased services million business quarter combined primarily our categories loans, year-over-year XX%. $XXX of balances Health XX% C&I housing driven X.X% or our sector.

million increased $X.X Healthcare billion quarter period-end $XX total end. balances million sector at loans or have linked of balances X.X% Energy decreased represented or grown Year-over-year, and XX% with X.X%. period-end loans $XXX at loans have quarter loans. total XX% year-over-year

QX Excluding quarters. BBB the linked-quarter consecutive extends growth loan to XXXX loans, X

Our current we year. into well next and our we're pipeline strong, momentum growth have drive additional confident is portfolio loan to in

driven in million Turning of and well to in for loans commercial $XX million and modest our the across continues in strong Nonperforming $X those quarter, guaranteed norms levels. estate assets, Non-accruing asset loans. decrease losses linked primarily U.S. by agencies, economic credit pre-pandemic quarter Slide X, government you third quality, loan exceptionally decreased the growth changes a portfolio, loan provision can real continued forecast. $XX reflects The historical decreased below this quarter. credit by see to good that and quality million excluding be

ratio remain quarters capital past the today. during With solid we and history positioned of to peers are is believe than of credit less estate in our a credit cycle, slowdown in well We economic position outperformance commercial to that an a we the substantially ahead. allocated real materialize

of the on workforce focused the in be real estate, to continue office preferences. given trends segment markets The

that verdict out the be to in pendulum is back more be to whether time still sustained seems shifting will office. as to as physical the Although the

XX% exceeds ratable on X and below review have is a long-term most Our flow at based office finance. ratio the over permanent the the loan-to-value office The cash not our are recent end are mini-perm average X coverage conducive markets segment generally maturities and of years, we option to next XXXX. in average space if the to X.Xx

points charge-offs were the to over annualized $X.X basis or for far basis XX our XX XX XX points. Net months, quarter loss averaged last points of million third historic basis and the range XX below have

we remain to available net of million or allowance loans quarter loss charge-offs and credit $XXX low. apples-to-apples for combined forward, comparison was X.XX% reserves. combined end. The outstanding expect is combined at for losses industry the Looking total allowance any should include The

persist. to as I'll We growth remain expect stable this the over continues turn to economic call and ratio conditions Scott. loan

Scott Grauer

Marc. Thanks,

to quarter. Total XX. $XXX slightly were linked Turning quarter, commissions down and Slide fees third for the million

at high set last new annual for eclipsing . Fees quarter, service previous record $XXX.X second continues segment wealth highs as and energy quarterly as tax included the this to for Our set customer million well for quarter. results hedging fees. the and commissions fees commissions quarter

third increase partially evolving was driving our hedging trading by municipal offset trading and in during to portfolio, $X.X by in fees primarily fees were million groups, This customer linked in and a was corporate tax finance influenced quarter, fees quarter, The rate our related down energy record other bond $X.X banking and down million million these environment from activities. this linked linked quarter interest quarter. expectations $X.X which rising offset MBS the market increase trading public a our million Although was investment quarter were decline service partially in results a by $X.X fees.

the the decrease were Fiduciary third quarter, fees and $XX to fees. due linked quarter's service annual for a million asset X.X% quarter second management tax

under assets administration Our $XX billion and quarter at management were end.

for alternatives. equities, assets this asset XX% X% moved quarter mix administration fixed income, Our or cash under and XX% management slightly with XX%

to of a our fee mix times diversified differentiator our of we We total is interest decile ranked fee and proud economic in especially are as peers, the top net believe of during revenue strategic a We when income, income percentage us of fee compared uncertainty. noninterest income. which for consistently for

revenue a stream cycles. months the the averaged during Our now revenue turn to wide economic over of a sustainable supports last that I'll consistently mix variety through call Marty. is XX% that XX

Martin Grunst

Scott. you, Thank

Turning to Slide XX.

linked was points decrease XX basis of margin Net interest will quarter securities. net due $XX a was trading point revenue the the I note decrease was that basis a growth X.XX%, $XXX Third quarter. interest in margin basis XX X to million QX. versus point decline million,

interest assets compared the the balance earning to grow the the of trading Net net it As as securities the sheet. is a spread grows narrower margin of rest at to dilutive point deposit environment trading, competitive by impact the quarter. average as . from decline was basis remaining the increased deposit X driven XX by costs basis points interest-bearing point linked basis XX

shift as of cumulative for deposit deposits as September increased to DDA and of interest third Our to into XX. continued DDA bearing. a quarter total XX.X% beta was XX% percent noninterest the interest-bearing

trends without and This with margin the net slide and net shows better business impact revenue to interest comparability. highlight and of the trading interest

trading and of partially of excluding our For was during the in used XXXX, quarter. the versus second assets, X.XX% in assets hedge mortgage our option margin, loans, quarter by impact the X.XX% in net Growth asset. by driven the was interest servicing trading fair to decline securities securities value a earning the quarter offset third

versus source been at industry, deposits know a from Turning that usage a an continue in not on deposits up our $XXX to that basis total have XX.X%, decline million absolute quarter. partially less quarter generally strong quarter of funding X% interest-bearing total with be [indiscernible] an the we period-end basis our million [indiscernible] or and and to time Average very ratio over peers. million than $XXX previous by $XX quarter $XXX end. versus linked loan-to-deposit end is million declined were offset increased Slide recently Liquidity was of million but demand low billion, zero. prior grew XX. $X.X deposits. up capital and and topic slightly Total and for the on funding deposits $XXX the average

points linked X.XX%, in and equity due from rates common tangible put balance was points up year-end X down XXXX. growth increase basis Our XX sheet ratio to interest basis quarter

be unrealized losses maturity the to year-end held of for adjusted is X.X%. XX.X% if on Adjusted is and TCE, with would too. including consistent impact AOCI, CETX X.XX%, securities

capital As the same proposal continued have share on while growth over for recent support the banks regulatory we million, at largely ample to allowing buyback. continued organic capital focused $XXX time is

repurchased third at the share. price XXX,XXX [ ] per average we an shares of $XX.XX quarter, During

increases increased expenses equipment operating disputed Antonio Turning Linked quarter of and expansions by quarter expense FDIC of total increased million, San $X.X other mostly to certain expense expense increased in our categories matters. and flat Personnel Combined, an a Non-personnel employee retirement our were million for upgrade accrual that $X.X $X.X linked million. increased benefits. to certain all driven much $X by by to we Memphis Slide million, ATMs related XX. X.X%. offset grew expense occupancy as decrease was as million, network. related $X.X insurance the or

or XX%. increased or expense $XX expense increased million Personnel [indiscernible] operating total Year-over-year million XX%.

'XX of our However, the year-over-year linked the related to combined $X was dissolution adjustments plan, increase compensation. onetime quarter of benefit million market with during quarter for second from a deferred of the pension

Third quarter expansion million $X.X costs. XXXX related also personnel of includes

$X both Cash-based offset other $X.X ATM with to banking operating compensation and flow. increased increases of the million. was business by FDIC and or Year-over-year, salaries increased related MSR These decrease that as costs as million increased increase, $X.X technology. open base $X.X directly the lower new increased mortgage million regular assessment rate remaining in $X.X in continued the were to merit Occupancy related related insurance increase investments and much primarily annual primarily partially position. million X.X%. due million retirements, year-over-year amortization data processing benefits $X equipment $X.X to a million, to The million a expense level $X.X with and and million production increased

will Turning have of to the level provide forward-looking financial detail we in XX. to quarters. that so note the we assumptions we XXXX for not are of middle with same I process, the few last our ready as are Slide planning

the months. will provide However, I for expectations higher next level the following XX

to We be Economic favorable loan migration geographic conditions single-digit business markets. us. and expect our competitive remain continue continue upper by be supported footprint annualized a environment from tailwind loans other for to in growth. and should The for

neutral flat securities a interest risk expect to our continue available-for-sale to portfolio position. maintain and We rate holding

remain in deposit XXXX to We to balance changes modestly or will migrate modestly over expect ratio We course. demand level the margin by additional Currently, deposit rate interest-bearing lower out the runs grow Reserve deposits next XXs. XXXX. stable or Federal and the its no and couple we quarters attrition low as believe betas in the of assuming are total be loan-to-deposit the

basis, expect and we commissions to rate expansion revenue fees initiatives growth aggregate, rates year-over-year on growth grow at for mid-single-digit a strategic [indiscernible]. In impact positively a total and our to

a expenses slight revenue expect continue modestly We we out strategic increase technology in to lag. to growth as invest following initiatives growth and with

margin assessment, interest in This realized. We finalized revenue XXXX. efficiency increase with not expect include special net impact is quarter to the of then the the FDIC which could changes ratio fourth growth of migrate the be downward as does

Our to of median combined strong expect allowance a credit the we level maintain is peers, our above and reserve.

expectations for our provision the costs and our we eventual an provision expense later loan strength recent towards levels Given credit our XXXX. near outlook of quality, expense. move the in and expect affect Changes growth in credit will normal continue to economic quarterly

Additionally, I'll now opportunistic repurchase to share activity. turn Kymes we call expect to for our closing over continue back commentary. the Stacy

Stacy Kymes

Marty. Thanks,

This quarter management on costs. from our our industry of the experienced the culture and highlights and pressure benefits the risk as revenue mix we increased diverse margin strong funding

reality strong our is supply base core margin While that for our and a a apart. revenue sets us pressure businesses us peers, fee-based . diverse

the X second during fee income the in quarters refinance and company's consecutive Excluding history. fee third last for highest the quarters of XXXX, mortgage volatile the are the

in grow our ensure our expansion through collaborate economic way as teams and we businesses, recent We grow right cycles. by shown fee into the invest our continue is all well sustainable to way, Memphis our a that talented company and to

liquidity I this be the opportunity credit, more see may new and focus and to areas strength financial grow on other institutions to in in these organically continues unique our a use invest while focused. internally While markets market to capital, as

Operator? strength on With to focused in your in using of pleased we the geographic that, are the grow years are footprint to take today's We and climate our both ahead. questions.

Operator

with from [Operator Instructions] of KBW. Gailey the The comes first line Brady question

Brady Gailey

wondering, over some quarter you about continued a of much the for we your X? saw move think quarter. interest third or just Yes, the the guidance magnitude decline net in I pressure, was Brady. margin How it's next big do margin how could the

Martin Grunst

Good Yes. question, Brady.

the or I little next the you So think X, to maybe context. way think give quarter a about

markets. think set that denominator different, even really don't of really be kind so really . the would and effects numerator I that, different. react the one, And impacts. number to It if trading will it's no any There's So aside reason to the drive that's much.

decline was points. margin XX So ex-trading basis QX

DDA deposit so And and were the up, rate there portfolio book growth. piece. the the negatives portion bond the positive mix The loan repricing the repricing of shift loan the drivers beta were up fixed and

QX see So should the in positives magnitude, negative basically at be very but same similar the will smaller. aggregate

points in smaller a QX, decline but margin than down. points. core see in component in And it's XX digits the to that basis expect That's that basis to double the to beta the we really be low So helps probably the QX there. slowing still going to

balance think in still And we'll that, we in positives the decline. the degree, give are we'll balance that then after -- outweigh lesser smaller QX, but probably on still the see margin the another the But into about outweigh more those a positives is to that Going increasingly you but negatives. the magnitude, it's likely same out color some or will and positives January. negatives

Brady Gailey

pace that single-digit mean, to pretty not there's level. relative many at at peers, your banks growth high robust Okay. loan a growing And is I then today.

you relative peers industry of in at are how pace today? the to grow to kind your elevated So that able

Marc Maun

positioned our this is Brady, us sheet the loan-to-deposit of grow the is XX%. allow balance Yes, Marc liquidity to Fundamentally, with Maun. ratio to well --

We grow. the and have liquidity to capacity

significant any credit don't pre-pandemic. with half as they've at were good horizon. And we been. criticized the they issues see ever Our levels as where mean metrics I are on

peers care we're we growth expecting C&I reason -- no in limits. that efforts quarter we in of health in getting out companies are particular portfolio, we've and able to field, our on back That and focus modest not very on to allowed that loan because estate, some energy generate our And So has are be to pulling grow that growth. real discontinue but pretty just own broadly and sales our giving area, just with our been internal of across and in some But to the our while us working X going in focused teams to and XXXX. space. out this have effort,

Stacy Kymes

is Brady, add. might this just I Stacy.

the it I manage we've think in capital constraints. is a and focal having and hit that others are for the the as seen Marc really point on liquidity real disruption us to been have it's less get is share to you when This to take really a do that. maybe grow definitely years we once not. others that able or every We're industry so market unique and XX opportunity are

that's so And us. focus been a for real significant

part last the when what outstandings I lot We've commitments in our the is that. really Historically, C&I over is core is a have there, And the important growth huge about but C&I such had year, growth, times like but an how the hasn't big we of Energy growth energy We it's growth. business, have been of strong energy not. driver. driven

by C&I, if been of has it's a a really of so for it's really across Each strong focus year particularly had think you And in market, markets footprint. been terms the our about us. in and growth

I that so that think we we're And can maintain that. optimistic

Brady Gailey

longer for Or lower? of It's All is Okay. the normalize growth that pieces all income think is mid-single-digit way your . finally just fee that is on term any great kind fee now there income this are fee fee right then the real Like about mid-single-digit this been Is growth side. that a we could BOK in income. for fee should this me over-earning growing this great for of is -- year. you story that year, such and And for level? income think is BOK right. growth

Martin Grunst

that about grow quarter think that is out been able able XX-month level Brady, And feel look any ago. or growth generate. mid-single-digit a to that we're at so franchise today that Yes, we've the do and period, consistently if we same that than to we you over Marty. this did we solid Yes, is good

Scott Grauer

that of would look the quarter, we third is the you record in lines. this quarter had components, to second add if in Brady, couple at second Scott. And quarter different I a highs

different that the areas. energy list were in the quarter have have the quarter, that's and second investment our we where we pieces -- other at third in So alternated of the top banking

coming not it's segment from any So X piece. particular or

got sources you've at and a the top So revenue of do diversification fee the perspective. house we those from just like revenue commission of

cycle have feel revenues the and generate we're business good fees types lines in. the of all of commissions, to ability various fee that we about So what fact the just regardless

Operator

the comes Davidson. line Next from D. question Peter A. with of Winter

Peter Winter

guidance interest income I you're you fourth the Marty, net in can thinking was provide wondering, about how some quarter.

so Just and about kind how thinking the net we think interest bottom? and could bottom? there's many parts income would you you're quarter, the of moving where trading think Do the you get to portfolio second it's

Martin Grunst

Yes.

So a Peter, give interest let me components. color you net the of just of bit kind on the little revenue

a spread. So and we That's $XXX averages that had X coming your loan a at you runoff loan points. able will and current were like something that's another third that -- XXX basis about that's in million basis do a growth, about reprice, of million a to repricing you rates get portfolio of each quarter, and Bond $XXX we yield reinvestment kind our [ quarter, positives. $XXX give that's of growth, the on quarter $XXX points XXX But around market Fixed-rate were. $XXX that's ]. rate reprice, what up million that loan at

so are those positives. And the

We September. in a Deposit the saw in of large a impact pace in pretty QX. slowdown betas nice increase were still

And so quarter cumulative the ended we beta. XX% with

slowing. that we could So see

QX a with slowdown slowdown that will still that forward. the as QX . likely that mix shift, DDA we after number and in benefit then And so higher And see

Stacy Kymes

Stacy. is Peter, this

precision a begin margin and is fourth absolute quarter. in think minus, of And there, degree net back around has the that we interest the But bottom have the I to to in deterioration high of we it's from both in that they Marty where the the of the is directionally, view quarter pieces our our less think are somewhere around kind view margin but likely revenue you'll we that quarter, certainly, quarter. the first current numbers, likely plus think with and answer that be trough then first first there. that I more specific, kind or not provided build

Peter Winter

these it. environment? pulling Stacy, spending Got a slowing there and strategy, advantage any thought Okay. with then, you're I competitors challenging just and and investing. expenses. this think given understand And down the investments of If next back of of just Is maybe I and . year the revenue opportunity somewhat some about company taking of

Stacy Kymes

of No. the you I or the for about next we're like, think my years. mean or most quarter year, followed view the next if is our not running years for -- I feels it company next mean, but XX this you for mean, or I Peter, us career, X years XX for

to so you like you get And of this, opportunities have these take it. advantage

fee been. because a revenue, I And but mix never not we're we've ratio understand optics, the our of sub-XX% company, of efficiency

to And ratio. all so that efficiency bother a we've us doesn't low ratio businesses because revenues our higher having at of XX% XX% carry XXs a got from efficiency fee-based

And of going going about and that. a imprudent be as going long-term advantage we're to we're from to financial things advantage but a may a think take about we're going most the there, prudent to we're perspective, distinctive be expenses. the going company, and we That's have not so anything to grow short-term do not institution, to perspective. We're that's

Peter Winter

could that just I Okay. deposit how and by it year-end. betas, the you're just wondering And if year? question, I'm last guess, you just next was thinking my about outlook XX% update

Martin Grunst

Yes.

we We that expect about year. bit slow this still as then are a . And that of end do thinking quite for year. XX% the to XX%, next

Peter Winter

of it where kind idea at? Any settles out

Martin Grunst

probably a lower. that we tell, too to little early to slowdown mean nice a I some saw and slowdown in September, see but we Yes. continue. quite expect It's bit

Operator

of with Jon line the RBC Capital question Arfstrom Markets. Next comes from

Jon Arfstrom

guys? industrial a real of for such for curious, I'm And some particularly concentrations. I'm what you And commercial because talked drivers multifamily growth maybe overall commercial in you. about they've real your comments, big growth. on limits prepared interested means for that In just and question estate you the been estate Marc,

Marc Maun

exposure estate Right. a try to are about capital, real and do we we of end at that our to talked of certain upper percentage I range. manage the What in was

lot seen that growth the to has So been in up growth that situation the construction a existing have and of of funding this due markets. deals of we number the long-term year loans payoffs have and slowed -- we've seen

in we next going it's so So we've be growth have rate but we modest year, that not to the seen that expect still CRE at room far. in for double-digit that year-over-year

focused are industrial. on where retail multifamily We the on been. We're piece. down and has focused don't markets see That's growth not slowing much. office the too those We and certainly not on

it So won't kind had in again, year. will growth be modest. be same of rate overall we the It something this

Jon Arfstrom

see on Can mini-perm same down. a Also, for bit not you little what that option to some Okay. you about a know talk issues. doing it's huge but do I about slide, made talked you office. -- And exposure comment solve talk you, I you're that? a in potential it's about

Marc Maun

markets time. significant really all loans, with If Well, to open reach But shape, the point good in this have a for issues at longer-term is that and maturity a ability the all may this would until X strong a time, right standpoint. they're up. portfolio office currently, our loan of time the of from period office credit very we office short we at credit have in extend at in no portfolio we

Stacy Kymes

to as perform would amortization perm us, X-year Jon, be agreed. a property of continuing XX-year maturity kind X-year on term, a a mini based on some So the for

a to to healthy. am but the give the permanent can maturity consistent have longer short until permanent when we so doesn't them refinancing a source, find are markets permanent borrower with them a bridge more markets And the

Jon Arfstrom

Yes.

little NII margin but in been Okay. then frankly. you Makes morning, bought the primarily, and higher, is I'm on buyback. curious, active getting this it's I up lot the guide, think, and sense. And stock and your just you've bit a beat quite a

just stock you of the where especially kind So appetite I'm and is? buyback capacity, curious,

Stacy Kymes

Yes, given and is where you have repurchasing think appetite that third where shares. quarter, would the in for very high a today given can I assume we it bought we stock the

Jon Arfstrom

general? in capacity And

Martin Grunst

strong ratios, the . very need we have Yes, and to we've we do got capital capacity that.

Operator

with Next of question line comes from Brandon King the Securities. Truist

Brandon King

Yes. morning. Good

to a is get just in the year around [indiscernible] wanted fee the the you're over beyond efficiency year, thinking trends trending how about I and or you how so ratio maybe income. next So initiatives context more income you know giving or

when do finally or peaks down? you stability finally and that Just you think it's see ratio efficiency maybe some coming maybe

Stacy Kymes

been Brandon, a to. metric has manage we the never that efficiency ratio

the obviously middle our so we're next And budget preparations for year. of in

to efficiency guidance So that think tell every kind what has that we going that about. we're of provide today. not around you But target I have we business ratio can is a

And is anything than mix then up. fee efficiency what When time more percent when revenue else down. efficiency the over our changes total of ratio revenue, net so businesses comes interest of is the a businesses. higher higher a And fee go efficiency are ratio percentage, the ratio will

business we for the ratio. that through look efficiency way our company guides continue because implied to by don't go and efficiency. opportunities our manage of business of that revenue of this expectations that to run inside each efficiency. We'll of opportunities for as for at look look of kind season line line But to continue fall we'll much we of But for so mix

nor how how that's So think run we not we about the company.

Brandon King

on with these off more plans. know a of based of just that I parts just follow thinking your that preliminary us around you're be give how revenue there's And you and on of when Okay. is initiatives timing to growth the and about which could expectations that. But lot that, up realized. when for moving will And context

Martin Grunst

Yes.

of Brandon. couple a you give to examples, Just

expansion trading think you our as and Memphis those, if X about producers. that's of So sales

So that has a business. fairly rapid ramp that up, nature just given of the

primarily. commercial that's Our wealth San and Antonio investment,

all longer those cycles. so have sales And

than up bit to that ramp And a expansion. Memphis longer the that so will take little compared when to

So it's centric. kind of individual investment

helps. that hopefully, So

Brandon King

Okay.

expect currently now? to on give Okay. you're ramp planning company X doing kind not years? of could next try us color And the technology that then the what to you you you more doing you're on how the And that on as initiatives, just manage over

Stacy Kymes

into several and our treasury existing our corporate our interface So customer the into investments Brandon, interface our we've years, made commercial in over platform systems. material last technology and

have are work in platform our continuing through. investments we're We significant to that that underway wealth

the previously, And not term. I term, so for mentioned the running company short as long we're the

providing make we with us. to competitive so and interface to are positive And technology customers experience platforms our continue ensure with investments when our a they really

Operator

Next Matt line Inc. of comes Stephens with question the Olney from

Matt Olney

I think growth, the deals, of they capital about much is to some larger just it's loan liquidity, larger-sized as growth bank from any and talk pulling new existing want syndications. want to hear syndications guys to back or I the deals on about is go commentary advantage competition taking I how you back to manage growth some versus taking their much of how of the customers? appreciate good

Marc Maun

Well, of material we of with. have the it's any SNCs that had quarter in all in number involved that. the a combination not like third Actually, we're increase

loans leveraged actually going Our down. are

on So can we're a relationship we broad-based. businesses focused that's develop where

so a And well we new getting significant way syndicated club as participation a not focused et buying deals . we're deals, getting opportunity finding have -- we're just into cetera, mix for where some of our as relationships don't nothing but and customers on into

Matt Olney

middle That's . time. we of the as market core the middle fairway right over down consistently are

Martin Grunst

Yes.

borrower. national associated that second To numbers different relationship we're and quarter the typically As direct there in quarter. third shared Marc the credit, the is have business mix between us a with a mentioned, extent them. for isn't other with We

people is on being is excited core, growth about that seeing created. we're really been relationships, think that is and direct is it we've it are why opportunities the because I - it I'm calling

. and that's its so over the important term us building franchise to really And long

Matt Olney

guys. helpful, addressed. That's other have My Okay. questions been

Operator

[Operator Instructions].

of question Timur from with Fargo Wells the Next comes Braziler Securities. line

Timur Braziler

quarter? of the national and in line balance last participations . you shared commentary, the that have on total of up Following credits do

Marc Maun

are about volumes about And make them that that's of the areas our are in credit X/X energy XX% in national and national about those shared markets. of of XX% portfolio. kind credits. of XX% those [indiscernible] space the shared of about up C&I as total make local mostly The do X our total We Yes. and

down loans. outside those going not we're of tracking our of So kinds footprint in

Timur Braziler

borrowers? levels. pandemic the seeing and the that base into what is Okay. elevated. still a Demand abating. demand less The we guess, the linked you quarter that, and deposits you below demand from I said standpoint into pretty be liquidity as guess total I Switching fourth decline pressure to seems base. quarter deposits for than XX% I to go from outlook know 'XX. is what's the deposit of your are now and is

Martin Grunst

Yes.

when So firm. down that's balances million QX QX. to within shift saw DDA interest-bearing $XXX And the a we in average from DDA an that to happens,

we'll a so of see expect expect to near rate that from be going in QX see then that we to And decline QX, amount going slow bit. to quite to a And QX decline QX, QX. we

still look we'll here can of will QX some we at confidence the change when months. size X that look slowdown what see cohorts, gives see that's at kind the we deeper slowing a and the number. higher into be portfolio So next a us of rate and over

Timur Braziler

thinking about relative deposits. sources Okay. How are And I growth, I is funding on guess, about it pairing guys as you're spreads to that year are getting the for to maybe that appears growth you next the with that And thinking the shrinking. you funding guess high growing loan that funding the loan slightly stable growth? and comment single-digit

is And but I'm out the just longer-term such have spread when outlook, wondering that at right is uncertainty pace grow you now? economic shrinking and be broader there there a fast loans going obviously, to why

Martin Grunst

Yes.

spread incremental loan actually widening. is So if on you that loan look volume growth, at the the incremental

that see relationships, that's spreads. incremental growth coming and incrementally strong. and been So we've to new so to does on wider cetera. a mention is with that, fact positive production loan widening have But deposits, production Not of able full new economics et that the the there's spreads of

So there there be wholesale amount be wholesale of it side is smaller way, be as incrementally doesn't profitable sure. funding well. and deposits the -- funded deposit either mix may growth the which going a some . in to But question, with some funding it's of that of whether it's to or matter

Operator

today's to question-and-answer to Marty This would like concludes closing Grunst the session. comments. turn I back floor for over

Martin Grunst

you today. ir@bokf.com. further e-mail great please us And questions, day, joining if everyone, everyone. for have a us . Have at Thanks, again,

Operator

teleconference. This concludes you. Thank today's

lines your you Thank at this for participation. disconnect may your time. You

BOK Financial (BOKF) 25 Oct 232023 Q3 Earnings call transcript