On Sep 20, 2013, we reiterated our long term Neutral
BOK Financial Corp
), based on its improved credit quality metrics and prudent
expense management. However, a decline in revenues was the
BOFI HLDG INC (BOFI): Free Stock Analysis
BOK FINL CORP (BOKF): Free Stock Analysis
TOWER FINANCIAL (TOFC): Free Stock Analysis
WSFS FINL CORP (WSFS): Free Stock Analysis
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Despite the macroeconomic challenges, BOK Financial's credit
quality continues to improve. Credit metrics rose consistently in
the first half of 2013 as the overall financial condition of
businesses and consumers strengthened, together with resurgence
in the housing market in many areas. Going forward, we expect
asset quality to improve as well.
We also commend the company's strategic acquisitions in the
economically diverse markets comprising the Southwest, Midwest
and Rocky Mountain states. Notably, 63% of BOK Financial's
consolidated net income for the second quarter of 2013 was
derived from overseas markets.
However, BOK Financial's second-quarter earnings of $1.28 per
share lagged the Zacks Consensus Estimate as well as the
prior-quarter figure. The lower-than-expected results were due to
a decline in net interest revenue.
Over the last 60 days, the Zacks Consensus Estimate for 2013
declined 2.9%. For 2014, the Zacks Consensus Estimate fell 1.5%
over the same time period. As a result, BOK Financial now has a
Zacks Rank #3 (Hold).
We are concerned about the company's top-line growth and margins,
which continue to be impacted by the low rate environment and
sluggish economic recovery. Additionally, regulatory issues are
expected to limit the company's flexibility with respect to
Other Banks Worth Considering
Some other banks in the same sector that are worth a look include
BofI Holding, Inc.
Tower Financial Corporation
WSFS Financial Corp.
). All these stocks carry a Zacks Rank #1 (Strong Buy).