BOK Financial Corporation (NASDAQ:BOKF) Q3 2023 Earnings Call Transcript

Timur Braziler: Okay. And I guess, as you guys are thinking about funding the high-single digit loan growth, next year and pairing that with the comment for stable to maybe slightly growing deposits. How are you thinking about funding that growth? And I guess it appears that the spreads you’re getting on that loan growth relative to the funding sources is shrinking. And I’m just wondering obviously, you have the longer-term outlook, but why grow with loans at such a fast pace when that spread is going to be shrinking and there is broader economic uncertainty out there right now?

Martin Grunst: Yeah. So if you look at the incremental loan growth, the spread on that incremental loan volume is actually widening. So we’ve been able to see a widening of spreads on new production and that the economics of that new production is strong. Not to mention the fact that, that’s coming with full relationships, so there’s deposits, et cetera. But that incremental loan growth does have incrementally positive and wider spreads. So the funding question, it’s going to be a mix of some deposit growth and there may be some smaller amount of wholesale funding in there as well. But either way, it doesn’t matter which side of the — whether it’s funded with wholesale or deposits that is incrementally profitable to be sure.

Timur Braziler: Okay. Thanks for that color.

Operator: Thank you. This concludes today’s question-and-answer session. I would like to turn the floor back over to Marty Grunst for closing comments.

Martin Grunst: Thanks, everyone, again, for joining us today. And if you have further questions, please e-mail us at ir@bokf.com. Have a great day, everyone.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.