We are upgrading our recommendation on
BOK Financial Corp.
) to Outperform from Neutral based on the improvements in its
credit quality trends amidst economic recovery across its primary
Aided by growth in net interest revenue as well as fees and
commissions revenue, BOK Financial reported first-quarter earnings
of $1.22 per share, well above the Zacks Consensus Estimate of
The company also reported growth in commercial loan balances.
Its diverse revenue mix and favorable geographic footprint also
backed its growth.
BOK Financial also remains committed to boost shareholders'
wealth. With a solid capital position and consistent performance,
BOK Financial hiked its quarterly cash dividend by a nickel, which
now stands at 38 cents per share. This marked the seventh
consecutive annual increase since the company paid its first cash
dividend in 2005.
While a low interest rate environment and regulatory issues are
the headwinds for BOK Financial, we believe that its diverse
revenue mix and favorable geographic footprint would back its
In fact, strategic expansions and the local-leadership based
business model of BOK Financial, which has peers such as
Cullen/Frost Bankers Inc.
First Financial Bankshares Inc.
), aided it to expand into a leading financial service provider
from a bank in Oklahoma.
Besides its diverse revenue base and sturdy capital position,
expense control initiatives augur well for investors. Moreover, BOK
Financial's capital deployment efforts will give a fillip to
investors' confidence in the stock.
In addition, the shares of BOK Financial currently retain a
Zacks #2 Rank, which translates into a short-term Buy rating.
BOK FINL CORP (BOKF): Free Stock Analysis
CULLEN FROST BK (CFR): Free Stock Analysis
FIRST FIN BK-TX (FFIN): Free Stock Analysis
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