On Apr 2, 2013, we reiterated our Neutral recommendation on
BOK Financial Corp
) based on reduced net charge-offs and healthy capital ratios.
However, reduced mortgage banking and net interest revenue as
well as escalating operating expenses were the dampeners.
BOK Financial's fourth-quarter earnings of $1.21 per share missed
the Zacks Consensus Estimate as well as the prior-quarter
earnings. Results were impacted by reduced net interest revenue
and lower mortgage banking revenue, along with elevated operating
expenses. However, reduced net charge-offs and strong capital
ratios were the positives.
Over the last 60 days, the Zacks Consensus Estimate for 2013 and
2014 scaled up only by 1% and 2%, respectively. As a result, BOK
Financial carries a Zack Rank #3 (Hold).
Moreover, diverse revenue stream and economically diverse
footprint with a major chunk of revenues being generated outside
its primary market in OK are long-term growth drivers. Further,
healthy capital position and opportunistic acquisitions are
positives for the stock. Extensive capital deployment activities
also continue to reinforce investors' confidence in the stock.
However, the low interest rate environment and changing
regulatory landscape are expected to be headwinds in the near
future. Further, we remain concerned about the bank's significant
amount of loans in areas that has experienced less economic
growth. In addition, we remain wary of the mortgage-banking
operations of the company, which may temper profitability in the
near to mid-term.
Other Banks Worth Considering
Other banks that are performing better than BOK Financial include
Meta Financial Group, Inc.
Flagstar Bancorp Inc.
First Defiance Financial Corp.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
BOK FINL CORP (BOKF): Free Stock Analysis
META FINL GRP (CASH): Free Stock Analysis
FLAGSTAR BANCP (FBC): Free Stock Analysis
FIRST DEFIANCE (FDEF): Free Stock Analysis
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