BOK Financial Reaffirmed at Neutral - Analyst Blog
August 19 2011 - 10:20AM
Zacks
We are reaffirming our Neutral recommendation on BOK
Financial Corporation (BOKF) following a detailed analysis
of the company’s second quarter 2011 earnings results and the
current economic environment.
BOK Financial’s second quarter earnings came in at $69.0 million
or $1.00 per share, beating the Zacks Consensus Estimate by 2
cents. The results also compared favorably with the prior-quarter
earnings of $64.8 million or 94 cents per share and prior-year
quarter earnings of $63.5 million or 93 cents per share.
Results primarily reflect a decrease in loan loss provisions and
improved credit quality. Increase in fees and commissions revenue
also supported top-line growth.
Strategic expansions and the local-leadership based business
model of BOK Financial, which has peers such as
Cullen/Frost Bankers Inc. (CFR) and First
Financial Bankshares Inc. (FFIN), have aided its expansion
into a leading financial service provider from a small bank in
Oklahoma.
Itsadherence to conservative underwriting standards resulted in
sturdy asset quality with very low charge-off levels, which in turn
bolstered its performance. Besides, its diverse revenue mix and
favorable geographic footprint backed its growth. A sturdy capital
position as well as capital deployment efforts bode well and boost
investors’ confidence.
Yet, with a protracted economic recovery, we expect revenue
growth to be restricted. Also, regulatory issues remain our concern
and a highly liquid balance sheet restricts margin improvement.
Therefore, the risk and reward profile seems somewhat balanced
for BOK Financial and we reiterate our Neutral recommendation.
BOK Financial shares are maintaining a Zacks #3 Rank, which
translates into a short-term Hold recommendation.
BOK FINL CORP (BOKF): Free Stock Analysis Report
CULLEN FROST BK (CFR): Free Stock Analysis Report
FIRST FIN BK-TX (FFIN): Free Stock Analysis Report
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