Broad-based selling across the banking sector drove shares of regional banking services provider, BOK Financial Corporation (BOKF, Financial) materially lower, as a sudden run onSilicon Valley Bank’s deposits sparked investor concerns about the health of the U.S. financial system. While we believe the actions taken by the Fed were well constructed and have proved effective thus far in walling off contagion, we acknowledge BOKF may be impacted by a reduced earnings trajectory in the near-to-mid-term. Meanwhile, the company continues to exhibit solid loan growth, healthy net interest margins, strong capital levels and balance sheet liquidity, while asset quality also remains very strong. We therefore continue to believe BOKF remains well positioned for success, with strong underwriting standards, proven credit discipline, diversified business model (which includes banking and fee service businesses), and an experienced management team.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2023 commentary.
