BOK Financial Corporation (NASDAQ:BOKF) Q4 2022 Earnings Call Transcript

Martin Grunst: Yes. So we would see both a stabilization in the overall deposit trends and some usage of wholesale really throughout the year on the wholesale side. As you know, the vast majority of our securities portfolio is U.S. government agencies which are ideal for pledging to FHLB. And it’s really normal for us to have FHLB funding as a core part of our overall funding base. I mean, that goes back 25, 30 years. So it’s really the recent couple of years that are the anomaly. And eventually, we’re all going to get to normal balance sheet profile at some point.

Stacy Kymes: Remember, Matt, I mean, pre-pandemic, we always view deposits funded the loan book. And the securities book was self-funding through other mechanisms, whether it be FHLB or repo or other activities. That’s the way we ran the bank for 25 years and so we’re just kind of coming back to that. Deposits didn’t fund loans and securities historically. It’s only been in the last really couple of 3 years where that’s happened. We’re still $6 billion higher in deposits today than we were December of 2019. So we’ve got to put some of this in perspective, based upon the long-term perspective, not just based on a pandemic viewpoint.

Matt Olney: Yes, fully agree. Okay.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Steven for closing comments.

Steven Nell: Well, thanks again, everyone, for joining us today. If you have any additional questions, please call us at 918-595-3030 or you can e-mail us at ir@bokf.com. Have a great day. Thank you.

Operator: This does conclude today’s conference. You may disconnect your lines at this time. And thank you for your participation.