BOKF: Improved Deposit Mix And Loan Growth Expected In Key Regional Markets

Analysts have slightly lowered their price target for BOK Financial from $119.20 to $118.70. They cite improved revenue growth prospects and deposit mix, supported by strong regional loan performance and a solid capital position.

Analyst Commentary

Market watchers have provided fresh insights into BOK Financial's outlook following the recent price target adjustment. Their evaluations reflect both confidence in the bank’s growth prospects and consideration of ongoing sector headwinds.

Bullish Takeaways

• Bullish analysts anticipate a stronger non-interest-bearing deposit mix, which is expected to enhance overall profitability and support margin expansion.
• The bank is positioned for above-average loan growth, particularly due to its significant exposure in robust regional markets such as Texas and Oklahoma.
• BOK Financial’s strong capital base is considered supportive of shareholder-friendly actions, including stock buybacks and organic growth initiatives.
• Improved revenue growth prospects, aided by stable regional loan performance, are seen as key factors justifying a higher valuation.

Bearish Takeaways

• Bearish analysts remain cautious about the sustainability of the improved deposit mix, especially if market competition for deposits intensifies.
• There are ongoing risks tied to any regional economic slowdowns, which could impact loan growth and asset quality.
• The incremental price target increase reflects only moderate upside potential, which suggests some skepticism about aggressive expansion expectations.

What's in the News

• BOK Financial announced a quarterly dividend of $0.63 per share, payable on November 26, 2025. The ex-date and record date are November 12, 2025. (Company Announcement)
• The company provided earnings guidance for 2025, expecting net interest income between $1.325 billion and $1.35 billion, and projecting mid-single-digit total revenue growth compared to the prior year. (Company Guidance)
• Between July 29, 2025 and September 30, 2025, BOK Financial repurchased 365,547 shares for $40.58 million, completing a tranche under its ongoing buyback program. (Buyback Update)
• No shares were repurchased from July 1, 2025 to July 29, 2025, concluding a separate tranche under a previous buyback authorization. (Buyback Update)
• The company reported net charge-offs totaling $3,627,000 for the third quarter ending September 30, 2025. (Quarterly Results)

Valuation Changes

• Consensus Analyst Price Target has reduced slightly from $119.20 to $118.70, reflecting a more measured outlook despite improved revenue prospects.
• Discount Rate has edged lower from 7.17% to 7.13%, suggesting a marginal decrease in perceived risk or required return.
• Revenue Growth is forecast to rise modestly, increasing from 5.86% to 6.07%.
• Net Profit Margin is expected to dip slightly from 23.95% to 23.80%, indicating a minor adjustment in profitability assumptions.
• Future P/E is projected to decrease marginally from 14.70x to 14.63x, which implies a slightly lower market valuation of future earnings.