BOKF - Earnings call transcript Q3 2024 | BOK Financial Corporation

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Operator

Greetings. Welcome to BOK Financial Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] 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 Worley

Good afternoon, and thank you for joining our discussion of BOK Financial's Third Quarter 2024 Financial Results.

will comments. Kymes, Stacy CEO, provide opening Our will Marc cover credit our Vice President Wealth metrics; results. Banking, will of Regional Management, of loan President Scott Executive Maun, our Grauer, fee-based Executive and Vice cover portfolio and related

statements then Grunst, the regarding presentation quarter bokf.com. slide the financial performance press We during website disclaimers at release X are made refer Our and will begin for forward-looking Stacy will forward to our on on call. I CFO, Slide now any over discuss X. call Marty our Kymes, you guidance. The and will the this who available Slide on turn to

Stacy Kymes

pleased $X.XX Thank We're to you, of earnings or per of Heather. for $XXX share EPS quarter. million diluted report third the

strong a and results, are we growing attractive that prioritized again previously, mentioned we we've and this has long-term demonstrated generating have that quarter. company As

quarter given and growth robust as normalized classified allowance net capturing strong net remains started track expectations. criticized We quarter, and to income remains an interest impacted performance loan communicated. The outstanding excellent. cover later, at rate will our during Marc quarter, of our activity trend, performance. Loan had credit the We're profile loans the a in consistent X.XX% upward markets below levels credit and loan commitments during that remain the of During although combined levels pre-pandemic margin prior portfolio the betas remain deposit with and recoveries stable, balances. have we net stabilized on down also capital interest robust outstanding

going forward. sales activity and are trajectory current sets the We encouraged up that by

management versus remain well Scott to in about details of levels administration contributed growth, we deposit for positioned the our liquidity We Our proud note well of billion time the our assets capital regulatory shortly, continued peers. portfolio, significantly but the fee attractive will income overall intangible and particularly under strength showcasing were wanted for strong results. those achieved preserving mark performed that levels while of maintaining $XXX history. These while surpassing growth or are I franchise. our to more talk results are segments first with in for that our

reflective is the solid value markets. and and focused shareholders. our conditions remain We to of the economic delivering in strength on our performance Our execution of customers operational

During Marty proactive Federal first the steps saw and quarter, we the quickly in is discuss working cut adapt will first from the also important is later. It's years, through for team more with happy this the this rates than to change. inverted as quarter. that the our of end the to consider X the I'm yield also no to curve detail in in longer more the time of Reserve,

Marc. While normal to us sloping. upside the for the this I'm forward. And we optimistic turn certainly to trajectory produced upward BOKF continue the may returns to operating and in we're forward. I'm allow our moving yield neutral when has and attractive with generating is of model well us rates, quarter, operating established. curve our call to level the The team backdrop team is with moving bodes This I'll economic that, should pleased be about there over results the the

Marc Maun

Stacy. Thanks,

Turning quarter, down up Overall, linked loans X.X% Slide X.X% period-end and commercial decreased to with X.X%. X. CRE loans

relationships. continue $XX in only we loan million new However, quarter, this grow the to average balances contracted pullback and X.X%. Despite slight outstandings or commitments

X.X% Financial year-over-year XX our is business those general rate. BOK If in services, quarter. look at and quarters the of a have total at outstandings year-over-year increased X.X% core reflective loan C&I, experienced commitments grown of and you third consecutive which growth segments rate until

balances walk majority QX, market by we points of for growth detail does in segments. Loan impacted more growth this the our with balances. will activity significantly consistent the remain outstanding for business trends energy through as we periods. Portfolio a quarter. basis public increased in loan increase Most loan our this specialty down markets broader areas sector. In due of the appetite this the While yields loan issuance loan domestic basis. energy in saw this I that bond more future which quarter, optimistic debt linked was transactions in debt decreased break a X in on the accommodating was unique reduce nature market, to driven This we X.X% growth of loan fees, the in quarter, increasing the linked-quarter lending about during

have early in to acquiring their many falling some to seeing led institutions, but utilization affected accretive combination. the the by capture investment we loans. are which facilities has the we balances moderate the to quarterly over after lead in transactions, in last leverage of energy these resulting in We've were lower revenue. years, ability realized are quarter. of additional participate This growth energy contributed In earnings the the from several acquisition to the the to banking credit cases, quarter of the yield outstandings levels but However, given period. our rates of any business to the during contributed also payoff I record grown temporary our commitments M&A energy XX% a and/or XX% increase factors can customers, of and which of bond We this in several previously. Further, fees with payoff of activity noted economics

given and outlined service Our business were some that loans seasonal fell the combined X.X% last quarter. advances linked quarter, general back of which has

up segments to with Looking continuing are X.X% pipelines more loan a broadly, being post on remaining stable. basis, year-over-year growth, strong these

it and the increased to HUD refinance as market. business health in rates spreads quarter. borrowers care Our loans fixed-rate linked decreased some X.X% made attractive for Payoffs longer-term

robust, driven acquisition by new remains potential pipeline activity. Our

X.X% CRE quarter-over-quarter. Our increased business

limit quarters previously, were close our several very discussed we we've to concentration As ago.

gathering of paydowns reduced As during have levels, up projects. loans the construction rebuilding new fund phase outstandings and are we CRE these new commitments as

of Slide X. at exceptional very remains XXX%, basis and a months. our room to time. I points. Committed that of basis U.S. capital averaged by which this period currently performance continue this the and remains which it's across XXX% in credit. Transitioning X loans trend basis government, in criticized fell gives not we long-term points is of standards. assets the versus guaranteed limit, million. area. NPAs, end to last but detail, growth quarter, committed historical relative should loan peers XX recoveries reserves Tier net us during basis, cover testament XX net the assets decreasing charge-offs remain again are X to quality resulting to X decreased outperformance build committed assets had won't plenty have in the Further, extending the We $X Credit our a quarter, strict point portfolio, $XX,XXX to to but this good of The on to attractive nonperforming concentration of for our over repossessed over Slide low X

Looking net expect remain forward, charge-offs below to historical we norms.

of X.XX% We to credit call of I'll now outstanding million are well Scott. over or allowance combined loans. And turn reserved losses $XXX for with a the

Scott Grauer

you, Thank Marc.

in businesses covering to the represents our revenue, but securities lines current conditions shown have trading by fees trading trends, business. I'd mortgage strong Both which with peers, can to our banking operating by to volatile, is representing our Turning be activity like muted. which based Slide fluctuate relatively of $X.X fee total XX.X% on and and XX. and XX% quarter, partially $XX.X million another results contribution and grew in markets, significantly and these from risk-adjusted the contributing MBS given the of for us market revenue, million expectations on strong returns. Consistent as Total quarter. of by This very ahead volumes, income was during markets rate and continues offset positive demand our from industry of sector. million, $XXX.X our anticipated decreased the driven from lower quarter differentiate client cuts businesses was any the to municipal begin

volumes spreads are trading Our by origination greatly influenced the and mortgage market.

norms. improvement significantly showing origination XXXX, compared remain historical mortgage While volumes industry to below

we Given to $XX.X the mortgage those cuts volumes rate unchanged normal with origination more anticipated aligns cut market recent coming soft. that revenue the for viewpoint. On for ahead, industry million return banking remained quarter. topic, to has third to X mortgage relatively levels, at relatively past and quarters, current the the in which remains The continue expect

mortgage normalizes, impacted. revenues positively increase volumes the and be should and revenues origination As environment banking both trading

While we past has X the improved space levels. in headwinds the years, outlook from believe current over we this faced some

securities fees, coming his and banking to for produce at team million, markets and in to that comments. businesses other noted continue results. Our solid in by investment Marc quarter record our We related bond led the a bond payoffs $XX.X underwriting recognized energy economics municipal Texas

to XX. Slide Turning

trust was revenue million. offset in Growth preparation Management the last tax seasonal our fee income at $XX.X consistent Asset quarter quarter's second nearly fees. with

grew $X.X billion, administration increased and management under market Assets valuations. with

revenue the of $XX.X transactions peer-leading $XXX the were and volume the businesses to to business built his platform. Transaction have we're building commentary, decades higher processed. These by our core for by of resilience attractive of in proud that decades us driven and opening eclipsed mentioned first X.X% They Stacy to give grew contributing over our of to investment. As this card strength to billion contributed market model greatly time, a franchise. mark work we the of stresses, a returns produce are and million,

the results outlook financial cover hand financials. producing Marty and now, to are the teams call strong over the these for with thrilled growth. And are We to I'll

Martin Grunst

Thank you, Scott.

margin, basis Slide net excluding $XX.X up points, up interest margin million XX basis XX. up points. to Net net core interest was and income Turning was X trading, interest with

up. replace growth similar the If actions bases conjunction interest-bearing see beta liability and lower impact degree and as deposit with high but largely realize rates we growth on on by would the were confidence way and us to our we as end and beta the QX, X points, QX, continued the due cut. were to in betas deposit cut our shift of recur. portions supported magnitude be a quarters, the not beta should beneficial last were Fed NII. the of decline. Overall, expectations that and fixed that book liability in are with high not about basis which and also in interest-bearing also XX to X over basis driven and track expected to rate basis X interest The repricing unusually our track securities mix points the including with is resulting expectations. exceed loan from out margin point fees deposit net the net rate that less have a down deposit deposits margin the activity borrowings the index deposit will be asset calculated by market deposit quarter give remaining payoffs, commercial Within level interest of talked of the completed couple and strong on These beta increased wholesale may bit, the way deposit income. Deposit Both growth loan to rate in causing DDA. incrementally of high repriced repricing on repricing Fed both we loan drivers wealth QX is The repricing, in

Turning expenses to increased Linked primarily quarter is which by X.X%. incentive Personnel or driven grew Slide $XX.X expense, timing XX. related. largely expenses total $X.X million compensation million,

of on his new XXXX, wholesale I has will strong, average the personnel useful. Marc the $XX.X quarter's the the revised borrowings. below the to added was lending offset last the That second million decrease the balances Looking our provides in X of that commentary. Deposit cost in contribution couple growth covered to changes. Loan expectations at expenses, specialized with of to be view full year expense this quarters, BOKF reflect which charitable XX payoff included made and Foundation increase by being activity were related growth note lower nonpersonnel remained quarter. Slide may a

net expect very reflect continue to recent to we commissions adjusted $X.X process in to reflect be and and MBS next year. strong credit also budgeting adjusted was to provision experience. We're were the our billion. higher trading, conditions income results quality and the in We of current Fees expense for midst than slightly interest

to consistent will like practice, guidance I be operator by in for to Q&A, with the XXXX QX So closing the we that, call provide announce hand followed will back January. With results normal remarks from which our we when would Stacy.

Operator

your line Michael with Raymond [Operator of Instructions] James. Rose first question the from comes And

Michael Rose

you I in segments in just some of in. some the breakdown, guys start But like understand could when are even payoff I that experienced the look it of of certainly market the some at Maybe loan smaller the kind the of energy. you specialized on looks commentary, markets declines

color you great. just So you look quarter, being the of around a cause positively some ago? now like of a as about you some loan pipelines versus pipelines Just there us would future color the will people can talked maybe I election to actually to there some do growth, quarters And couple actually be what full, borrow? give know headwinds think

Marc Maun

that, say that Marc. I'll you this last to tell part I'll is decisions. uncertainty will obviously, delay just people Well, first, cause

by tax our decisions that this have resolved term. election looking likely going short overall. year. But it's the views we that, But pipelines in So some expect we're or the later an that be do will forward policy on the impact of will at

have with at But the We the why what looking quarter, seasonal then at unusual down in on that the are -- in as we pretty high strongly line that in the we're portfolio shape. feel our C&I is if seen in Fundamentally, come we were has an that, the past. This look And we are during we year-over-year our third that's -- quarter, said in the a concentrate we not pattern second pipelines growth. that quarter. at world in good that development. been we C&I

is and from XX%. in growth utilization And we only so commitments, X.X% growth -- down year-over-year X.X% to in and in XX% had C&I

has but looking have quarter. industrial the year, pattern we actually throughout of the the our second -- third quarter and raised not just we've existed, commercial level loans So to overall at

the or standpoint, that markets, say, from comfortable we're be because we've position months we barring we in I any our that the our at and very in that would acquiring going are change plus. we XX or economy, to and future markets with different then pursue business able those loan a been capital business. forward talent a standpoint a generate And growth, and to actively in So experience to significant position when credit increasing we've in good actively the been going over good we're look pursuing markets, all calling from the in next smaller feel

Stacy Kymes

is this Stacy. Michael,

pile on. Just to

circumstance I and think overall. unique of impacted energy around -- loan quarters a care quarter so we've health had XX consecutive the that this growth, really and you had totals

tailwind. You've got lots of

election real Salesforce. and we I limits, that good. can Everything track below got happens estate, commercial we there We next feels be think look us. Marc's to at so were months the very into our around you areas on good We've changed track of inherently you we've fund quarterly. the XX quarter, up our pipelines X% But uncertainty until in C&I monthly, our growth. through look policy. consecutive around room some really well our as because the next those XX feel season There tax grow think as feel this concentration confident. There's there. We looking really we're if to with growing We right. that. strung about just surface, quarters We loan year-over-year. are or that's up happy ability to still confidence year here We're core together portfolio. still nothing

continuing talent, markets. announced haven't of we're in yet fact, some In of even which our we to add some significant

loans So we're grow continue to we that we'll as confident forward. move

Michael Rose

the are this as brokerage fee and to as is trying relatively that, the of for Very do would if fees we to impact Scott. be sequentially would less kind and the the next Certainly quarters? I we guys positive. What least think in where some relates among it mortgage could maybe still quarter. But maybe see of impact some the as lines maybe forward headwinds? you it more view, than one the helpful. there of forward lower curve, understand headwinds some of near-term banking couple or some of business? opportunities in the how the greatest just curve outlook cuts of what you like softness, Maybe And your how the sounds of at meaning trading rates, And put get forward about

Scott Grauer

Right.

So great question.

sector when you mortgage-backed the significant entirely to line that limited securities we've trading in saw seen detail we where is at headwinds. -- the I look it think item,

MBS, eliminate increases other and sets. saw of the all our out we actually that parse you in when so product And

all actually So municipals, treasuries, activity income our corporates, fixed was absent of up, the MBS.

have did but we'll in in inside on have municipal momentum see in remains have mid-September underwriting we side. positioning even our volumes which MBS activity question constructive an on seen from the continue of perspective. point seen, the the have we we continued side. about and beginning to of terms activity, the with So and move, to the is and the uptick space, the MBS trading both a degree Fed But bond and an there an seen activity belief The inflection we the that

got sources our management asset in churn the general inflows our On assets offset side, disbursements, consistent of we've et cetera. to with

like we X% alternatives. terms So our cash, with of income, equities XX% XX% XX% allocation our in assets, fixed and our of AUMA in

to side. flows management our our benefit asset think So poised more growth more I market on on but importantly, the continue we're asset to well in, perspective, and probably in significantly from balanced

and develop comment those on think, spaces. And trends we're a those you on then the want across of Marty, all So mortgage board to positive on bit little continue constructive production. see really I to

Martin Grunst

Michael. Yes,

a production production, future a there opportunity see both moves little I little is So QX. in I'd percentage is say forward levels declines volume we on think mean like that in rate still the I continue, see come production, and there. feel and bit the we lower time mortgage as period good sale current up we'll depressed. a back But are gain

I you what you to back QX. saw more think in go like

there's So item that I in line think well. that as opportunity

Stacy Kymes

there's pressure there's But there. doubt no

I we don't ATM other TransFund. about our got, think you we've if areas about talk business, like think

have went kind corner that XX of of kind next have over way meaningful -- business transaction Our excited difficult card a years there. where X.X%, very ago the they through the I'm guys and up really system of really through turned couple and a a their mess in really From conversion perspective, got XX the growth headed And they're corner. to X% steady. turned these months. about

the all Our businesses and designed up aren't to to right. go

the are or when be over performing mentioned We're I mortgage business. fiduciary are there mean under I the mean, MBS some markets today. or Scott of businesses, of the opportunities by from like very softer of impacted about awfully trading assets excited others billion tailwinds so management, well. businesses, year these lots going so. next $XXX And to the the that's the

into right, we together So together going go but very not it works up in the to how different over cycles. mix all all goes and tandem it's it like as the is good,

Operator

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

Jon Arfstrom

a for expenses. you Yes. on clarification Marty, question

the I You comp. guess. or for rate that expect X XQ down in and normalized the level, kind run you is think comp said Is come to quarters of And and a of back incentive a more QX the number to I QX? last QX average QX

Martin Grunst

you at that's Yes, personnel and gives there's Jon, $XXX for of QX that just to those for high. it look way at if I not to that kind have always run do the that's versus kind -- quarter-to-quarter. QX of for rate That's $XXX.X level better expense, There's at million you easy is our X, incentive low what average sense in item. comp the rate mean line million. recognize is run you noise to just way much a little sometimes a

Jon Arfstrom

Yes.

deposits, quarter. driving on is client gains? Then Slide $X Or had, you where Curious this you're billion grow to deposits what's that? movement? in guys the talking the Or growth almost it in for share market general? X Okay. Is about opportunities that you're finding

Martin Grunst

towards a broadly, of little clients, more bank, across probably wealth of combination more the Yes. new a but clients it's that a skewed bit it's we're is existing more and to commercial. little the bringing And It's business. commercial bit but broad-based

Marc Maun

mix is that change. of some Jon, Yes.

from not We're an DDA to changing moving they're option. are taking mix that and of deposits. just more from We're advantage a moving that interest-bearing it. the them in and as customers DDA opportunity losing have We

would new have I of period. last number this we a customers -- over have We say added XX-month

Jon Arfstrom

Yes.

businesses? changes energy balances, is market changes just and in simple think or then those Is of and M&A the what as back businesses do just it specialty the terms And pressures of what growth energy on payoffs that? heavy Okay. there's as you in open happening? those Or some bond

Stacy Kymes

periods. coincidentally just what there's could that be energy, I think, time. is lot I and all that more happened This bunch had to a the of It kind quarter, I same for that tends in could types it happened at mean, is a we of a don't -- bit think these change the Stacy. little ratable unique over third that.

just mean was change. up the to be That I way relatively there's doesn't some think end end it's to the But there's which balances. at here pressure will you fundamental with continue could that look year, the materially it if think shift of is that's September. at but happened it today, I going of end from on energy the don't energy where

some horizon, would -- the of -- be sure. things if you'll third the end impact or quarter I the activity capital about of could that grow a M&A think quarter grow forward, I think over here. behind months that the or longer still balances see markets over for particularly we move balances next those think bulk over months, leftover from think be XX X -- or And the I balances that there kind may I But should you of us. the for I when think activity next the XX a to as time about those expect

Marc Maun

in would stable long production to to I customers consistently have only borrowing clearly, the been that one pricing markets long, And and the and are continue -- going I more the and in this invest is their a had oil order of bases it's maintain so in add mean market, still good we've to time. the Yes. forth.

time, we'll get we've share So in this we come those been as expect long opportunities and do of and about. they a business our --

Operator

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

Peter Winter

do you For FDIC to for expense X growth. growth? even growth And is company? high normalized of years, of kind last think and more rate the that there It's Are excluding the running charitable lower expense contributions. what opportunities been

Martin Grunst

say things. couple of Peter, I'd Yes, a

up business right, expense manage at think we appropriate line prudent growth to We're that around. But So doing important want just And sure around the at looking each ratios us. it's to attention move so will efficiency all more is a as always to rolled numbers efficiency actually pay line every is as than way. line. it. you're in is that super of about business margin those important of to we to make something and moves And level

we very growing on in are business. business However, our investing our also focused and

serve of and technological capability And so form producers customers. adding that adding takes the to

And that couple so items. you'll see a of line

good this we've I'll that investments delivered long-term data just and in really we've note growth good that what year, about the feel but processing got communications, for investments we So company. are

of And saw, add that's at line going you'll time, be off not what so that gone you what that projects, a come over couple the step that's means looking company. But for important part that step just as example, a your really quarter, come in about you'll up in well, occupancy, including so very people, this sure. see to and of excited if see then what business that's to question that and growth have people, function was. of And you'll back down we're for and for we see up,

Stacy Kymes

we we with overall if mean, good you looking kind the efficiency, it rate look it's line at environment are I managing at business, been, where an about of perspective. efficient to I of feel Peter, really from the But think be by where

the in you've drive that got not at -- little are of a that bit. been a level, past, also today. some efficiency think a you'll I I see think think operating we're work investments at businesses they've I But real -- that the where to hard not maintain here, but high that us ratio efficiency us funding and where revenue couple you'll see make

They And going a so but help -- those impact do they we're long to like us cycle, businesses. it. through we

comfortable us of we it level. line And not too worried a And land. that at look our that. at it's look important when efficiency said, so about Marty we're business to Like very at we're through for more it with

Peter Winter

if mentioned, been Okay. very the I It's strong. growth, then growth. very strong. deposit been And think was It's could loan as outpacing Jon the ask, I

there a there XX%, want And thought ago? level, loan-to-deposit that maybe certain to see quarter So loan-to-deposit aggressively you of with than kind ratio more costs is the ratio maybe opportunities are push deposit don't above? go down just to a you

Martin Grunst

the very se. does a loan-to-deposit But deposits well. us having as We're give Yes. manage managing do, we not per ratio right, loan-to-deposit to ratio to a you're ability

so, left the in the that's good a to made the what gives rates end bit as we for the quarter And more was before go of go. we confidence did Fed the able bring And of sustainable us. us we're bit and got a from all QX to being down we're deposit happy move, to of we to in very third progress that a as little and result the of about done still expand QX, trend that going a that margin into continue quarter,

Peter Winter

And that right? basis core that's X reported? the expansion points, margin, on on a Not the

Martin Grunst

QX. both see you'll we to go think I QX as from that in

Peter Winter

So even X.XX%? above the

Martin Grunst

That's right.

Operator

line Your comes next question from with the of Brett Rabatin Hovde Group.

Brett Rabatin

like had payoffs X post you a XQ? and first little comfortable dive -- more expect about due in the And here. And you lowering it was you Wanted more basis I to I just drivers bit your sounded expansion a the And X of to basis wanted and core believe margin follow up in maybe about X.XX% talk Can on know talk from on that that rates points. cut. deposit deposit betas. with you that little were it to pretty bit just Fed then points

Martin Grunst

Sure. Yes.

September mind had a from it I in X. mean was it keep [indiscernible]. down points term SOFR in basis that actually -- So the by cut SOFR rate actually XX

and down to the end in you bit able September, wholesale the and get the the get gets then at So of you of result quarter, some actually saw up little quarter, both book fourth deposits a were quarter. in and through with still good the and so ended end loan the only we impact that really into when better a

moves effects happen about comfortable those that we quarter. dynamics, will can plays that very over are confident repricing if through. out around, always understand There's but trading the some very next well and denominator So overall that with we feel very how how play

Stacy Kymes

X.X-year we the we've about funded or plus security but book, loan to got fixed down, every that's rate don't commensurate portfolio a with forget, a lot Fed and deposit going step. that's liabilities move Brett, rate floating a with duration got that's minus talked

of part what's with interest that's so of income. and net And interest to margin what the going confidence behind happen

Martin Grunst

about loan That on fixed couple top a has the it talked of is portion as fixed last are for quarters. just I the Everything repricing repricing still stuff is still book, still happening still up. up, rate the rate -- of of that's securities

So that to be continue will supportive.

Brett Rabatin

then some selective I Okay. you be aggressive seeing just And hear with the that very conversations, of your thing I'm you curious might more than what potential others M&A curious, maybe partners? you. just or activity-wise kind environment, people And That's playing -- thoughts as helpful. wise your other there'd players to guys be of the maybe was chatter out think in I'm you're what some on see and

Stacy Kymes

not of we're really looking just concentration that I have interested banking. our kind franchises. for. not just And find. interested I because mean, in right and commercial size of value the who think core in a those difficult exactly lot the opportunity. to are those We're We profile in that there's think that somebody It's just we're Yes. broadly, estate We a large been discipline has there. We value deposit got to key fits what real deposits.

that could from We're if not our the remains possibility because really as on organic focused we on growth. But how to that of bank, something a kind a available, of low next -- an cherry level we to that We're always not things going really which lot achieve our growth. it there's we're the extent -- to out top so isn't organic nothing, never for but just as growth. so the strategy something successful emphasis we're that that's the that events relates think -- to another buy of And still very to They're probability of sundae. We're our of buying perform not acquisition there's perspective. happen not market criteria today. fits we're well on that do

Brett Rabatin

enough. Fair the Appreciate all Okay. color.

Operator

Woody line with question next KBW. comes Lay Your the from of

Wood Lay

through if of side you the to portfolio much the in was wanted portfolio. I and deposit more start there? sort could the deposit dynamics It curious just the repricing how specifically, walk fourth quarter, on that time reprices of and

Martin Grunst

largely book. That's a Yes. consumer

year. that And over so well that's got goes a a out tail

month So a so any amount huge given it's not because granular. it's in

and book. the in itself pricing characteristics have that not a So is on the deposit to of going impact of large

Wood Lay

Got and picking loan a clear to on you're is CRE the Could competition it. have follow-up space? what relative in little just color in competitors, maybe given seeing just you like then And It bit, levels. of a sounds the us some give one terms activity advantage up you concentration CRE. on the

Stacy Kymes

I mean time of think also I those there's customers we've competition, Yes. a a are for few little lot there's I cautiously of moving mean a with some deals. less but long and been that -- a there's more slowly.

trying we that's others still by concentration bit. is are when that why that we'll had to able that part being little never market to a -- bucket. But some advantage So have that clearly, in there trouble impacting that's we've their fill of be manage the we're levels. But in confident

occasional But an that been refill with existing I'm we to that and grow And principally worried confident over continue about to XX so customers there. an months, mix next never issue new in to That's bucket. that customer we'll XX the we'll prospect growing.

Operator

Instructions] line the Your comes next Stephens. question [Operator with Matt Olney from of

Matt Olney

to I of cash as And what And that details in size in portfolio. then the change the still go on Marty, flows think been size the as just wanted the you've higher plans you portfolio? Just near this that investments more term. securities overall then that? of portfolio, Any pricing to there buying is the mentioned recently? back more any far

Martin Grunst

similar reprice, Sure. this think expect to we sorry, of -- security at little can forward. And about that that that I quarter kind what is repriced next good over And where and terms over run buying, and about during per that rate X-, of you Yes. very going what of about quarter. of end bought is we're the the $XXX shorter is mean, basis $XXX paper up level duration sort in the that how spectrum. year is QX X-year the a probably a saw more much it's past in quarter so of bit to the happens kind points the of quarter of mortgage month XXX in probably a cash to about a -- million and We million come like higher,

Matt Olney

movements guess of But Okay. billion. line the on XQ? on for the color Got guess a September Is I that little the I $X can it. down at fourth pretty a sheet know hard at bit And the I below for be Or borrowing came noisy. some balance then assumption end position quarter any XX, good that quarter?

Martin Grunst

Yes.

down brought You X that that got the at going on end. things there

we that had one, big the that growth deposit the I that driver. during mean, number was quarter, So

should that durable. be so And

that's is lower security and the our cycle just because second, of the settlements month month up that the always then the works. then end middle And just in the account at trading of how mortgage-backed

little a there end a of driver But the is month big be than usually bit will that deposits. So average. lower

stay little I'd should is a in loan trend, that place. should bit. So you -- that's say Hope grow that, see time the up materially until a may but a -- that that's growth good wholesale starting

Operator

at the for this Kymes time. are closing I back turn to no questions remarks. call There further will now Stacy

Stacy Kymes

for everyone, net earnings higher to rate, and benefiting as asset joining quality. you, we expansion Again, the profile. proven strong consistent demonstrating liquidity management growth, quarter, long-term today. our while have risk practices that Thank it history margin long maintained relates credit, earnings this from interest and over interest a we've exceptional also capital, both We've discussion

with be of high business Please at interest Heather will model coupled questions appreciate material believe Our diverse have and willingness cycles. many eight-state Financial the and in to time liquidity if you King for our with any business of to footprint, has reach our resiliency raw h.king@bokf.com. out this your the capital resilient us BOK through We tangible future spend our proven levels economic afternoon. growth. We your

Operator

call. This concludes you. Thank today's

You may now disconnect.

BOK Financial (BOKF) 22 Oct 242024 Q3 Earnings call transcript