We have reaffirmed our Neutral recommendation on
BOK Financial Corporation
) based on its fundamentals post-first quarter 2012 earnings
release, the current economic environment and the capital
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 announced a nickel's hike in its quarterly cash
dividend, which will now stand at 38 cents per share versus 33
cents per share.
This marked the seventh consecutive annual increase since the
company paid its first cash dividend in 2005. The increased
dividend will be paid on or about May 29, 2012 to shareholders of
record as of May 15.
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.
BOK Financial's diverse revenue stream, sturdy capital position
and expense control initiatives augur well for investors. The
dividend hike will also give a fillip to investors' confidence in
Nevertheless, with a protracted economic recovery, we expect
revenue growth to be limited. Furthermore, we remain concerned
about the regulatory issues and a low interest rate
Hence, the risk/reward profile remains balanced for BOK
Financial and we have a Neutral recommendation on the stock.
However, 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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