BOK Financial reported solid fourth-quarter 2024 results with earnings of $136.2 million ($2.12 per diluted share) and full-year earnings of $523.6 million ($8.14 per share), placing 2024 among the top years by EPS in the company’s history. Management highlighted a durable earnings engine, supported by a high-quality balance sheet, strong liquidity, and a 40% contribution from fee-based businesses which has been a structural strength versus peers. The quarter showcased meaningful growth in core C&I lending, particularly in Texas (C&I up 8.1% YoY; Texas C&I up 9.8% YoY), with energy lending activity turning positive into year-end. Credit quality remained exceptional, with NPAs not guaranteed by the U.S. government at 18 basis points and a combined allowance of 1.38% of loans. Deposit dynamics remained favorable, and the company grew average interest-bearing deposits in Q4 by about $1 billion, aiding margin resilience amid rate cuts.
Management provided a constructive 2025 guidance, signaling mid-to-upper single-digit growth for total revenue, with net interest income expected to grow in the mid-to-upper single digits. The guidance assumes two Fed rate cuts in 2025 and a long-term rate level around current levels, implying a meaningful improvement in trading-related net interest income as the curve steepens and funding costs move lower. Trading revenue is expected to shift toward net interest income if the curve steepens further, though trading fees remain an important component. The company also underscored capital and liquidity strength, maintenance of a strong TCE around 9.2%, and an ongoing investment to attract talent and expand in growing markets. Overall, BOKF presents a favorable risk/return profile grounded in deposit-rich narratives, a robust fee framework, and disciplined credit risk management, with the 2025 outlook hinging on rate paths and demand for C&I loan growth in Texas and Oklahoma.