BOK Financial (BOKF) 21 Jan 252024 Q4 Earnings call transcript

Company Profile

Participants

Heather Worley	executive
Stacy Kymes	executive
Marc Maun	executive
Scott Grauer	executive
Martin Grunst	executive
Jon Arfstrom	analyst
Matt Olney	analyst
Peter Winter	analyst
Brett Rabatin	analyst
Wood Lay	analyst
Timothy Mitchell	analyst
Timur Braziler	analyst
Benjamin Gerlinger	analyst

Call transcript

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Operator

Greetings, and welcome to BOK Financial Corporation's Fourth Quarter and Full Year 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

you and our results. full thank Financial's of and quarter fourth year afternoon, for discussion joining BOK Good XXXX financial

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

will quarter Martin Grunst, then and forward CFO, performance the discuss Our for our guidance. financial

our statements and website to presentation release this press refer Slide available on call. bokf.com. slide you at The the X are We regarding made on disclaimers any forward-looking during

now turn will Kymes, X. to Stacy who will I call on Slide the begin over

Stacy Kymes

you, Thank Heather.

for earnings $XXX.X resulted of to This year or the million pleased in earnings report are our of full highest We year, EPS EPS the of full fourth in for the history. of $XXX.X second $X.XX quarter. diluted million, share, or EPS $X.XX per

As outstanding to I reflect on without bank. we at team mentioning impossible the that do have the year, it's the

a We focused driving is on entrepreneurial that culture success. and long-term unique have

year are this and of risk by base hard strong of with the results Our underpinning an exceptional a practices. management robust fundamental work team, representative

the take to a I would like to the share highlights with year moment you from ended. just

year, the Reserve's most Federal net and we cycle. of into betas delivered was the interest During solid, expectations recent income deposit on our high prior cutting

us also for the giving outlook signaled was During a down we've leverage betas continued in the deposit and being margin. fourth deposit quarter, to rate evident, confidence able capture pricing strong

combined of remain below portfolio remains we've X.XX% loan of Criticized normalized maintained performance levels and loans. of classified credit our The outstanding pre-pandemic levels, allowance a exceptional.

points. of net we had year, X basis the annualized charge-off During rate an just

KRX growth. has quarter, The most XXXX, of long-term as placed been C&I the loan focus determination for to us the is and our near data in with the general these This us. XXth third of growth also percentile banks. and Core C&I Texas recent persistence regional It Texas generate fruit And would of results services but X.X% have takes end an peer at Antonio. focused of bearing growth loan into market reaching We've in X.X% broadly specifically increased year-over-year business, are efforts growth C&I These the on in year-over-year. portfolio, which is and expanded San reflective a rate.

are in payoff going forward. year we While those to the of related during half our grow ability loan in invested time. lines activity which growth also back specialized new the balances bolster we by experienced year, revenue-generating welcoming to growth We've confident of second business future and our teammates prospects our in CRE, over will the

this This Our fee regional deliver income in of at segments the to will of performance contribution highlight ranked Scott details to a commentary. XX% his have begun revenue. banks. top

results have total the together, of in which a return XX%, Taken contributed to XX%. far outpaced shareholder KRX these return of our stock index

quarter. ratio at as This of last Our higher, TCE KRX was achieved the results flat in levels. in TCE liquidity, quarter and of while moving the capital preserving placed third end typically Despite the rates many regulatory of ratios declining, versus banks' result levels of us which top quarter. the strong tangible X/X Index would were end our X.X%,

the Once year could results the position hard of and the fourth I'm this our organization. have are about expectations our quarter improve. results for relative and not that it's trajectory full imagine XXXX quarter to released, high for of proud

remain strong robust, and curve is operate strong The economic Our yield more we the beginning markets take fundamentals. the to is normal shape business a growing. historically backdrop has and in

over to I'll the And turn call with Marc. that,

Marc Maun

Thanks, Stacy.

balances fell up X. Period-end loan were X.X%, and Commercial real loans loan quarter. linked balances Turning grew X.X%. to X% estate individuals balances to Slide X.X% while increased commercial

quality are grow continue actively continued of and sheet, loan are believe of these pursuing growth. and and new commitments our take With and conditions credit opportunities. positioned advantage new economic balance we We in capital markets conditions to supportive are metrics, that relationships well our to

the XX existing Portfolio repriced the loan in as our cuts. rate decreased Federal portfolio basis new an quarter, quarter, yields points predominantly rate and increase reflecting linked Loan increased relationships. during business recent following fund-ups floating balances energy the in funds lower of X.X% lines

in pipelines his X.X% segments being up is C&I remaining to These linked produce but Texas, continue that loans enough it in strong on our referenced from quarter, Stacy know investment grew repeating. X.X% remarks, stable. I a basis, primarily opening this with Core Our in story loan exciting this resulting increased growth market. bears year-over-year this

quarter. Our linked loans healthcare decreased X.X% business

production to loan activity and have continued into HUD remain new robust, fixed-rate the we payoff see pipelines market. While

CRE as refinancing quarter-over-quarter. of projects cycle of business Our loans X.X% CRE decreased completed down a in were normal the QX long-term basis. part on

loan and new We creating Loans individuals we'll personal be funding X.X%, over continue and to time, loans. phase add in up mortgage increased reflecting construction residential growth the in loans to growth. new both early loans

years. X. the outperformance low basis Committed end criticized this exceptional points. decreased to not NPAs resulting guaranteed the loan area. last $XX standards. assets the peers our remain in to levels points loan period by relative XX The the versus decreasing basis $XX million nonperforming Credit XX to across lowest historical million, assets and we've assets repossessed again extending quality seen quarter, government in to XX very Transitioning to Slide this U.S. portfolio, remains trend fell of

basis the In had minimal net months. XX averaged over $XXX,XXX net and quarter, charge-offs addition, we during of last X have the charge-offs points

expect going below We forward. norms remain historical charge-offs net to

outstanding losses reserved combined well credit $XXX a million of of loans. allowance with for or are X.XX% We

to Scott. I'll call now over turn And the

Scott Grauer

Marc. you, Thank

linked contributing income $XXX.X trend. revenue. to short-term Turning results of our for for quarter. XX% million, fee total and total This On to isn't a operating the grew $X.X million revenue quarter accounting a basis,

hallmark peers a years, us differentiator to the success our conditions. Our X fee our economic total for in varying a of XX% key past from income has been has averaged over revenue and

to like businesses on by markets our and I'd Slide covering begin securities XX.

driven trading widened returned to we increasing than following levels more higher Our the volumes in nicely, spreads, to normal cuts during by demand MBS quarter, the as million rate anticipated saw client prior rebounded and fees XX.X% quarter. $XX.X

environment, like and steepening to that trading distinct interest to yield note income. fees Due revenue net I'd curve trading trading-related total the includes X pieces:

move quarters. curve This seen revenue interest historically. allow quarter, net portfolio their will coming million. while this If above of total were provided mix million, more costs, we revenue $X.X further further trading income income in to table opposed to on the see trading-related We've to a trading see trading income and recent fees steepens additional net $XX.X this yields from you interest fee with funding slide as shift was as our we've dynamic yield

has Mortgage the relatively for for fourth million revenue banking the steady past remained $XX.X quarter. quarters, at X in coming

results down securities to produce solid $X.X $X.X syndication over fees million. businesses and quarter. markets up other continue million Our prior with the banking fees were Investment

this However, and the is exceptionally a coming quarter, well. performing business still off record is

Turning XX. to Slide

time less but know increased Asset quarter-over-quarter, usual, management grew quarter, my revenue businesses $X.X linked growth trust is in relationships. consistent this I grew results income. have billion, $X.X client for speak $XXX our the continued million or billion these fee valuations than themselves. on commentary and slide market with in exhibited reflecting eclipsing over X.X% AUMA growth

over financials. call And Marty hand the to I'll the to now cover

Martin Grunst

Thank you, Scott.

also current liabilities flows at interest-bearing rates; to reprice loan points. increases; $X.X expanded saw noninterest-bearing by to was higher several basis margin, Reserve. fixed more interest growth and also by the yields; Net X driven QX, Headline trading rate margin trading, up core to net basis balance grew by increase portfolio portion assets flows XX. core Slide at of both normal current income market higher non-trading was The reinvest cash by interest deposit to we and supported basis quickly in the points, the Turning point cuts growth; the strong up cash excluding DDA The than market repriced continued in in response with million, margin rate Federal securities components. in factors. seasonal interest driven continued X portfolio net X fixed

Both the should to previously communicated market great short-term expectations gives to decline. activity realize ability of magnitude and repricing our and us quarter's in continue the this deposit beta our our expectations pace rates aligns with deposit confidence

balances Last we approximately below could cost. noted significantly, beta deposit better a wholesale to in offsetting be mute result that billion, interest-bearing of $X our would in balances but wholesale quarter, as at margin by out if deposit it liability This accretive increased a fourth somewhat, played the we grew average quarter funding NII. deposit and portion beta and the

our in to of promotion million Non-personnel to to fees million, Slide or professional total resumed as and largely and continue invest we due XX. Personnel increased expenses million, Linked X.X%. grew $X.X expense grew expenses business levels $X.X Turning seasonal activity trading normal quarter $X.X project-related costs. businesses.

on year record growing our full XXXX, strong provides note lending projections businesses. I C&I Slide as specialty track XX and Loan a items. our as couple of of well reflect our balance view will

versus recur XXXX, expect to concentration to do due of headroom our ample which limits we levels have We in high paydowns this not year.

That and trading by to total growth for growth For we would single-digit net income expect trading based be upper the Within growth revenue, assumptions interest NII total the noted expect rate above our mid- fees on Scott digit. single we shift revenue, unaffected range. to mix in be between earlier. rates, that in

higher incrementally driven the shift trading fees NII. by from is to rate mix growth that However, trading

We digit. trading expect growth to be in upper mid- single NII ex to core

lower growth expected Fees is and commissions to digit. single be

revenue affected However, mix that opposite has trading by rate growth way the shift. the

the Excluding trading, be single-digit in range. would commissions upper fees mid- to and also

Lastly, will foreseeable controlled see low I remarkably our today charge-offs remain will future. of view note assets the supports for that well nonperforming the we level that

the from hand which be With that, call like closing followed Stacy. the would to Q&A, by will remarks I for back to operator

Operator

RBC Your comes of first Capital Instructions] line the Arfstrom Markets. with [Operator question Jon from

Jon Arfstrom

used the a talk about you the could activity about expected thinking that the some the I'm happen? just curious changes Can of in and Or and is payoff You you're paydowns over of change? already when kind more 'XX? time, to little phrase starting bit

Stacy Kymes

growth with of respect kind our and You're talking outlook? about to loan

Jon Arfstrom

Yes, exactly.

Stacy Kymes

Yes.

to XXXX, which C&I I so in saw much areas -- look very that Core energy hardest play really in I C&I the we the out business X%, you that's time very, investing is because growing spent and move, good. favor and sales we've Core That's with think think our long the cycle. in

whether and were core was The really related And to a headwind capital health care. of loan markets, the portfolio care, respect of really some to to yield curve for idiosyncratic things the some of real energy growth. health permanent and because outside businesses, the and financing unexpected shape whether for created core it's commercial timing headwind specialty opportunities or estate the estate it's energy, the real the

return back year plenty in normal growth for sustain have those think do, C&I that of those cap we you concentration and to kind we I the growth next And we have achievable. which you you can of of areas, if is and very so around loan we growth, can, we more think patterns, room the guidance think think all

Marc Maun

we'll thing one X than of on see which benefits the expect experienced this continue and loan side a from is that. the Jon, to lot we -- a add the previous we generate I in new faster fourth of some pace relationships the in which quarter, quarters, the see at energy fourth that in will created quarter, growth Yes, of lot would we energy we that -- did did the of much a

turned have So is pattern to right that and a seems now. around growth in

Jon Arfstrom

well prices want thoughts I don't think deeper outlook about that did know, and ask and the come lending the your curious risk administration I in you of on you energy. new as What think Just but do maybe about with to how administration do energy just on the down, feels like as that well? Good. to there. about terms

Stacy Kymes

Yes.

too it's know to soon exactly. think I

I certainly, administration the for that drilling. up lands expect federal we open that think will incoming more

will be the I think better. permitting process

going in think they're But about ignore investment. which you their to that and they and that's filling are do I the and spend those getting behavior interest, positive. think capital cannot disciplined I that going investment being I think is reserve, what's a to borrower to their strategic a return capital petroleum how commit best guys on

on so hedge they return will discrete can those they at our companies what what drilling get out of the and for energy curve time activity. on in decisions make And can kind based the point

time it for confidence decision how best activity, think And actual not in make economic point to it's think or but so for I too the spur I know them that sense at the soon we in a borrowers they're them. have may lot to spur our to going drilling of make

Operator

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

Matt Olney

guidance for to want ask income in XXXX. the about net interest more I

assumes double-digit us guidance appreciate versus net there. launch 'XX, first get growth provided think see or number just help the respect Can side to give income? on a struggling us guys kind you of and us guidance 'XX that what for I interest any quarter guys could in with you point your low to I'm that you

Martin Grunst

it's to all continue -- in to you've growth I are growth in going core the be in rate trading the just play useful see where recently. trends out the to seen you're supportive, through supportive X and both to deposit think of of to pieces, trading, as throughout that of piece. of last And kind that's quarters Matt, ex sort factors got reprice going about be of asset think guidance fixed to And the securities year Yes, our repricing margin. it's couple That's margin going going and see ex nice just first supportive think then be trading you core loan DDA margin to the the up. the and quarter same the you've margin

when here's that. you the about at look second of way think component, that, to trading half then But the the

had Page portfolio, billion, which see cost, So you XX of a spread funding in that's and you -- X.X%, that can trading so $X.X over the points which its a basis QX, just on X.X can XX. of see, yield

QX. net $X.X so in And of income interest provided million that's

in that $X.X yields mortgage-backed XXXX, quarter. rates into that yields mortgage As the security and but And the territory, trading fourth short-term should [ you to volume around come yields are probably going be billion still to down is trading $X you've in seen billion up -- XXX over come account XX-year play ]. the on

in a QX. see later that then quarter year, the And full we're you'll X So cuts. effect assuming of in more

comes or a the spread in bit down, points that easily XXXX, of XX cost that for overall. funding over And be points course XXXX could basis that so was basis and that QX, little XXX more

that And pretty change you pickup a you the So that's in can term trading-related out that short get widening will quarter-by-quarter in as more funding year-over-year that grow big see playing costs. margin. the by

to in X look ex attainable total mid- And costs. then trading, us. given the about revenue. attainable when But that growth fees I you at ex our trading the upper NII the trading the offset with pieces revenue, for in within digits that importantly, think Now most and gets to also importantly, That's single digits, total trading upper mid- fees ex for and single NII, both we've for hedge are very of to ex the think very guide total, trading trading us. fees

XXXX course bit about 'XX. fees versus trading over piece, how to how that. good add we of last little total, that versus of the that to then may want of go a revenue feel the to very going Scott is And in regardless is much trading margin, And

Scott Grauer

carrying I really component kind XXXX institutions that into a amount which of the of and year, has so are the our of clients this clarity Marty to -- the forward, Sure. get those pieces the as or last Matt, financial what our institutional is think in X we've on but emerged. side, indicated, going beginning prefer of on forecast seen weeks so fair

and well business. to the little increased but you the and think demand for when a rearview curve, quite bit around about potential Fed clarity, appetite election seeing not which a We're invest for our the in mirror better clarity out certainty, moves. willingness bodes So bit of

move Marty our ability established and during forward about as the we've continue on to quarter. to that feel confident fourth the we're rate optimistic said, So

Matt Olney

the the that. Okay. commentary Well, And up Marty Fed I deck, see follow guidance in I maybe appreciate just assumes the throughout made. on cuts point that year. X to on a the

with assume respect you the of I us or curve? think shape those frame yield imply of that guys guidance does What give cuts. to the the time

Martin Grunst

Yes.

that really the assuming are give today, rates about year. they long-term we're or take, where So throughout are

other driven So into the Does any what's changes that putting particular short curve by we're sense? steepness make that than in not term.

Matt Olney

Yes.

Okay.

bit, yield flat, stay a would those I little assumptions? So with long-term come the in guess, but curve, improve rates rates short-term

Martin Grunst

Exactly. Yes.

Operator

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

Peter Winter

if into wondering more. was just question Matt's a could I I bit dig little

income the pretty outlook, a interest it's net Just you range wide guys. for

can -- of the of Just you, of the the versus lower the the upper Marty, talk some about range end drivers maybe to range? end

Martin Grunst

Yes.

loan-to-deposit good fixed to the I'll we easier, very cuts pricing. the that's we I some how year. but on that very that we aggressive to our our more able gives action feel The deposit bit push throughout And rate be us take the side. we securities that of we room flexibility we of to necessary that are lot that's pricing extent things interesting deposit that built to on visible incremental about one side out, that about -- very want point laid all think repricing, But make plan. That's if be to repricing, want We've the and and is not gives an one is you want out. on low, us rate think how got awful thing to. that, durable Peter, I ratio manage a certainly the that yield if to not the little when

Peter Winter

guidance you for -- average I wondering hear see loans, on I of expecting loans you're end just what just but would I'm Okay. what do the range? period -- And -- that

Stacy Kymes

assume think mean period. is you -- the the over we're Stacy. growth ratable relatively is I should Peter, this I

typically try understand we the So will every But to kind over XXXX, period. similar we assuming any in for plan results particular it we're we but that. look from actual grow that ratably kind as growth in of We of at it differ kind amount the period, not a elevated quarter. of

Peter Winter

the Okay. And to had ask, you've it's kind have nice been Stacy, with the additional low talked team to I of of my pipeline and opening lift-outs just continue remarks, if success you priority. additive it because in growth. sense looking that you but is then, Do still could a and to a about lift-outs do team M&A,

Stacy Kymes

Yes.

there's we think pipeline for se, pipelining lift-out constantly are team per our not new talent. from but perspective, I a

company. have to XXXX. market So And really a single us trying to in been and producers for targets that in, XXXX we're we our it's for every we're revenue important strategy add

in latter to of We we'll half do that, that. and dividends earnings, We saw very that. to the that's the for to very accretive 'XX, think our value particularly very to our franchise continue do accretive positive,

very that so in And adding regard. in to our aggressive all year and and no markets be this we different be of continue will talent,

Operator

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

Brett Rabatin

horse the time. Wanted to one beat growth loan more

think other So me reductions if renewed understand, like in in with way I it looks if estate payoffs the have just offsetting didn't the some was of energy other the you within multifamily then get to portfolio its real obviously the commercial bucket, declines. also a bottom. clear in and growth momentum had swung energy. understanding I getting to health you've care And

that's around other Texas color geography? So I think strength of Oklahoma seems you also, sense being more like what of to to maybe the in portfolio. hear the loan with C&I competitive driving kind a And just been wanted book. a or lending-wise, the the with of I rates has if function non-core then any And get just wanted happens it

Marc Maun

are okay, Well, there. in several questions there

see let health basically, into market. refinance to a the with we number to and that start of health of to basis for lot rate and will care. us interest a our the taper care the begin on opportunities generated long-term on customers a a for So -- from activity taken that has more going we opportunities place, environment growth And to our off, me side. see HUD And start it's

rates fixed they're move things CRE with interest similarly, were. to interest advantage maturity had do because, again, aren't an to moving And business, a like of rate. opportunity those interest they in rate a impact the on longer-term So the has course taking short-term again, that event environment maturity off portfolio some of normal a our

do a we new are we of which limits we're So to and we us particular fund have is opportunities in a in And going grow occur, given opportunities expect our us that lot CRE that's to a have up cycle those portfolio. our company. opportunity, through opportunity concentration relative to to capacity adding historically gone construction to that give

for the And but do real we for are going have of various there, the opportunities to capacity deals CRE. and look and deals additional the of we're that we the best deals. consistently different growth we generate in that for can looking limits We for types look we concentration best different and always we have exist, estate, types feel like will for can

a we of approach longer, investment more On of lot in that to been in a relationships, Oklahoma growth C&I growth. C&I is more. more the Texas C&I are and the We've The is that have saw generate pay which just loan we've those time But and show may a starting market we side, the to a it's consistent takes here dividends. little in renewing. starting of to It fourth driven taken. have in made Texas amount we've substantial quarter, some the

that the spent lot we've C&I committed specialty in not industries, now of the made but And side those in investment going that we transactions we're to get we've on get time business as generating the the might a and so and investments, we're Texas.

double-digit on the All side And other markets to well. the that. to rates we're as starting grew generally C&I see

the the So been fact a in that continue. factors, consistent good change years. would that expect really we for last feel barring of to economic about couple the it's And any performer

we're providing. guidance the combination kind with why come And we up the so is of

Brett Rabatin

NII? move can change the but way from extrapolate or to And a with in to, you business, an guidance to number is of helpful. much what giving there dollar income know trading I tough expect to probably give on of exact Okay. up an is -- then again, it's to back and how you're trading there fee the That's you just in terms come idea

Martin Grunst

based per That shift your Brett, certainly, on give But guidance in on not go tough wrap a to important economic trading the total, the going year-over-year, to grow that's really around. one total in that's in down we're nicely probably on is point. fees. growth be point going and revenue, trading think NII that to to to that's our assumptions head But would trading between se. there's going a I

Stacy Kymes

the I broken XX NII look if at slide can given fill need kind not. the so that pieces we've provided all you And to on the kind the that from call, end it day, out think line you blanks we've component to see or time. impact item of see Slide Brett, revenue in that the the has make does can you of how you And deck the in you of total the we accompany sense trading provided Marty trading think of over there. fees I and

for think discrete And item, are put to but so I quarter the by together. it a there we're down pieces to or not going line you it break

Operator

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

Wood Lay

I wanted success And in fourth does consistent XXXX? strategy the fourth color what the drove the to a really mean the start on successful And deposit was throughout the impact quarter success really, on has that your been deposit year. growth quarter. quarter? Any deposits. throughout I

Martin Grunst

us, business. I but it We all more lines Yes, bit as X was happy I'd we all across growth lines happy change of see say little that And X expect the you was we that growth a of our the the for in might we're to business have. does with were continue next it we've strategy. that very commercial, And grow year. mean to expect track to deposits contributing. record not got,

to high but at going happy the that it achieve got settled that not we've It that's we rates on that has the we're well. great factor level from of very be business year as competitiveness price year, been was with traction a very and down a what were may ago, this able the and in

Wood Lay

curious, might more helpful. maybe how regulatory backdrop capital? you deploy position I favorable way over of and just excess impact was Got then view to it. that That's sort shifting your a the capital. does you capital And

Martin Grunst

earnings doesn't We how of long-term Yes, to helpful. represents is we shareholder excess capital. and know going I'd we've fundamentally be certainly how a patient that's say return. thoughtful just for backdrop, really got we whatever avenue We've we're that think And level deliver got But that, very change that regulatory strong position. about into about capital, capital and it reserve. a deploy best we how and

Stacy Kymes

given right Woody, right bank for kind of the of to particular we how We've environment. outstanding and rating be how who's kind of any of do to that in and impact overlay the types risk those we regulatory in that so really manage the can CRE things, doesn't the done able us shareholders things depending way, gives latitude -- the charge regardless here. do things our

Operator

Mitchell with Your next of Raymond question comes from Tim James. line the

Timothy Mitchell

on range Michael. we potential and investments for tied growth might perform. are businesses any kind expenses, mid-single-digit the there the want start that and a upper But we want as think versus and should of range. Obviously, contemplate I just on just they kind probably to team how that underlying out of appreciate year? to for I about to lift-outs we on end fee Tim lower --

Martin Grunst

base nothing would and team component know, really earlier, hits drive growth taxes driver propelling QX, that does QX talent standard. that you expense payroll as it going a Yes. qualify said Stacy talent but There's But constantly talent growth core a as drivers the grow improvements you'll of in investments. growth, growth, that's as lift-out. well. the for see and year, that's and every are to in All like long-term year-over-year Revenue there. IT we things And in pretty continued the like both looking are those to base growth is

Stacy Kymes

on we've We're holistically where that value how tomorrow. businesses. time of can to one about a constantly the recently an today looking is add investment think to And spent things make mortgage we of we see lot our

space. And in fully -- so warehouse late to you'll half, quarter third the see really the lending really us fourth fourth probably latter the engaged began quarter, be -- in quarter mortgage

do order talent. to to that, In hire we've had

quarter. was Some of fourth onboarded that the in

And some or But things the or periods. where the individual revenue of future team in San individual of producers that mortgage like warehouse will call like contributors markets. things -- it's be broadly or it, onboarded that in each these Antonio

today We can create the top better where the for spend opportunities grow us are future. line in for opportunity to looking a constantly revenue dollar to we

that so making. is our efficiency really I think we're maintain investments and types we're these about these of making positive we're being investments franchise, while And excited able that to for ratio

Timothy Mitchell

Appreciate so Awesome. you about of fee just like there? banking of of some for trading are post what the other investment of investment far. it's and kind It and about what the talk And color on and color. businesses and improving not, seems and I kind Can appreciate outlook trends said election. mortgage kind you the banking the the brokerage

Just curious seeing you're front. on what that

Scott Grauer

Yes.

is Scott. So this

from you impact the is insurance So take on at you the take -- of as growing of business noticed the in results, brokerage XX%. slides, retail sale impact our -- if the if you out, our the unit

to there, the piece that in of trends business. and we confident gain with momentum we're continue So our

of activity seasonal has as but and municipal particular, fourth the is finance activity have exceptionally in saw We more we centers that that been our the banking strong. really majority concentration activity of high quarter, investment investment a banking Our in in a around Texas. decline

that good and demand in positioning there feel debt the cycles because the activity. banking And participate up very back so gear activity district the investment school independent here, our elections for equity we and we when don't about predominantly the

Operator

from Timur the Braziler question Your Fargo. line next with of comes Wells

Timur Braziler

really the is deposit on question It especially My impressive CD result, considering was the rates quarter. in didn't that pretty a side. move first

like Just it maturation in schedule declined looks what wondering little remind even there. And if balances a looks us like bit the you quarter. can the

you're start, deposits how the of standpoint, margin much first from half getting maybe head a of Just a 'XX? time from in

Martin Grunst

Yes.

deposits, a So time our off ago. year We let put roll isn't mix actually huge. CDs couple we that of little brokered a there over a terribly on

is And But way, a portfolio it's of X% drove meaningful. CDs not The pretty there. so that brokered that's today, short. the so dropped. the less part than core our by are drop And

X-month maturity or original -- XX short. lot X fairly Our tends months that's to CD a maturity. be portfolio to It's of

of only it's So couple a maturity. of months

as repriced when some were And on. in quarter that than see little rates a being put so nicely see lower the you'll bit first we of those

Timur Braziler

[ then securities, current for of And ongoing the XXX versus just the the trading it's Okay. hear I ] rate correct, XXX at kind did XQ? rate ] looking [

Martin Grunst

Well, [ produced weighted as so XXX whole ] [ will well the XXX current of some some so. blend always mind, in for is vintages. ] the is just keep MBS coupon average trading. Today's older that trading portfolio secondary mortgages recently portfolio But have new and as or

just -- precisely exactly won't it level. but -- that be current the production towards know moving So

Timur Braziler

Yes.

just a of still now that of any that you activity new lastly drove for was business away, backing to what the Great. me, activity, could I course refi-ed just of found just that the rates And or had if kind up Okay. estate timing year-end. home? largely just And as has guess, be a normal some look that made stuff going comment that there? component just at then commercial with real payoff you wondering I'm

Martin Grunst

Timur, in if lot. happened XX-year I look the drop you you rates you at at rates of September, that kind fact just would a had what point to those

And in QX a the so and that of at are that Those did end down pay guys right at taking that takeouts low bunch off rates. customer QX. of base point

going it so that's up, what's slow going as And forward. back to rates came

Operator

the comes question from with Ben Gerlinger of next Your Citi. line

Benjamin Gerlinger

from that's, Just and NII trading pivot as to guidance any X, kind let's at the really I'm this of the expenses. drive X looking doesn't mid-single to it, call expense digits. fee assuming now

to doesn't just So gets manage revenue, it of what if Or towards the more possible? us overall XX,XXX-foot is kind low view, it would investment, kind range? high to And What the end? gets total end much? matter us of the it you of as

Martin Grunst

Well, a is lot some to there's stuff really all value. that's long-term a and making businesses production tied on investments just decisions, the their extent. portion trading expenses Stacy that the those that is that decisions business, a talked long-term the within about, effect we're in to are of There and businesses, drive making those the transactional we're even loan based mortgage of production, to piece the shareholder the

as that so component behave will variable. And

the something for is would of comes so you'll range, up, see the higher And as that to end revenue example. be that

Benjamin Gerlinger

call a Okay. That past, years know helpful. is a it, couple let's over the at And I of minimum.

it sales supportive the you're might to call in environment? really not was attractive those this C&I what but kind potentially You've this you a but hiring stay call idea if bit bankers know funded rates above-peer stopping, of or it, want hiring be of across other what more cycle, individual elevated, that footprint whatever of been style that does and C&I and prolonger of up change growth. I lending your

Marc Maun

an impact have Interest rates we're who on focused not on. really had

ones very are credit more provide strong focused on on ability future business, prevent -- can can source generate secondary guarantors, manage we are our and feel management the that with calling start-up much lending the credit associated of credit focus a repayment, manage we have don't having types ability And to us that from in not to long comfortable rates We that that we prevent that that structure through C&I teams anything metrics industries interest focused can creating We on businesses, into. but cycles, efforts. term. and is we've can problems ways of driving the fit the the

Stacy Kymes

is And Stacy. this Ben,

interest at any if think aren't I spectrum, rates historical rates look on of kind high. you

kind if of we middle fairway. rates about blended that I rates into basis, on historical years the are in where But X XX all of and think you were I think that own right, a rates its last are set get of behaviors. think and the the created

And having really I be this than business think is rates. that low likely the more much to environment

to the really where financial of coming pandemic then of things don't I of for think was yield an that had mean, flat just that And curve just period to normal. we out as sustainable. nor types an over it last more time. period and the awfully of you yield frankly, crisis I slopes unusual of the see And excited think have rates decade. as borrower think shape a low from to extended great time those I curve a adapt normal and that's this a inverted I curve. we're will the positive the behavior opposed to essentially

is a financials for that overall, overall. positive net-net see we So

Operator

Q&A and no would remarks. over concludes CEO, As there now the further call to session. questions I the time, like Stacy for to that President this are turn Kymes, at closing

Stacy Kymes

right joining full for exceptional, for for core today. is you, with strong future. Thank our and income pleased expanding us the I'm growing the the are fee post robust and trend this everyone, continue strong Credit quarter continue year. activity and businesses very results. happening into our discussion results loans to and we Margin is solid to this the is reported quality business

thankful us. as am at grit behalf to organization, I'd Marc personally, has integral decisive conference I the and and I We We, thank engine during time the constructing earnings recognize last call Maun. leadership his spent And Marc you. a determination, be an like organization, over last to will moment to proud the a long we've career an of business BOKF. This for this Marc's and Marc building this take He's do of of built. want XX on we're been with say foundation, part years. Maun.

if Please questions this Heather h.king@bokf.com. BOK Financial We us out afternoon. to you to willingness and appreciate your your spend have King interest time reach at in with

Operator

you That concludes for meeting. your participation. today's Thank

disconnect. now may You

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