BOK Financial Corporation

Greetings. Welcome to BOK Financial Corporation fourth quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Stephen Nell, Chief Financial Officer of for BLK Financial Corporation. Thank you. You may begin.

Good morning, and thanks for joining us. Today, our CEO, Stacey Kynes, will provide opening comments. Mark Mon, Executive Vice President for Regional Banking, will cover our loan portfolio and related credit metrics. And Scott Grauer, Executive Vice President of Wealth Management, will cover our fee-based results. I will provide details regarding the key financial performance metrics. and Marty Grunst, our recently named incoming CFO, will provide our forward guidance. PDF of the slide presentation and fourth quarter press release are available on our website at BOKF.com. We refer you to the disclaimers on slide two regarding our forward-looking statements we make during the call. I'll now turn the call over to Stacy Kimes.

Good morning. Thanks for joining us to discuss BOK Financial's fourth quarter and 2022's full-year financial results. Starting on slide four, fourth quarter net income was $168 million, or $2.51 per diluted share. The strong results of the fourth quarter continue to build on the earnings momentum we have been developing throughout 2022. This quarter was the highest pre-provision net revenue in our history. Through the fourth quarter, we've now put together five straight quarters with solid core loan growth. with annualized core loan growth of 13%. Our fee businesses remain strong for the quarter and for the year despite the worst combined equity and fixed income markets since the late 1960s. As short-term interest rates continue to rise during the quarter, the combination of our asset-sensitive balance sheet and growth in earning assets drove a $36 million increase in net interest revenue and a 30 basis point linked quarter increase in the net interest margin. Credit also goes to our diverse fee base, with linked quarter fees stable despite the full quarter impact of implementation of previously announced changes to our customer overdraft program, as well as the continued effects of the mortgage origination market downturn. We did experience an increase in linked quarter net charge-offs. However, our asset quality trends remain unsustainably good. In recognition of the strong growth in loans and unfunded commitments during the quarter, we did add to our credit loss reserve. The uncertainty in the economic outlook remained high, with slightly less favorable key economic factors this quarter. Turning to slide five, period-end core loan balances increased 773 million, or 3.5% in the quarter, with growth spread across C&I and commercial real estate. Unfunded loan commitments grew $839 million link quarter and have increased $2.9 billion over the last 12 months. Utilization rates remain slightly below historical norms, so capacity exists for continued growth and outstanding balances. Average deposit volumes continue to remain high compared to pre-pandemic levels. We did experience a decrease of $1.6 billion, or 4% this quarter. with attrition in both interest-bearing and non-interest-bearing balances. These declines were consistent with industry trends in response to the continued efforts of the Federal Reserve to move short-term rates higher to slow inflation trends. Assets under management or administration grew $4.3 billion, or 4.5% linked quarter, and were down $5.2 billion, or 4.9% compared to last year. The market impact on equities this year, which comprised approximately a third of the total, was partially offset with new sales driving the performance. I'll provide additional perspective on the results before starting the Q&A session, but now Mark Maughan will review the loan portfolio and our credit metrics in more detail. I'll turn the call over to Mark.