We initiated a position in niche banking services provider, BOK Financial Corporation (BOKF, Financial) in the quarter. BOKF provides commercial and consumer banking, investment and trust services, mortgage origination and servicing. We took advantage of weakness in share price following the company's disclosure of a larger than expected loan loss provision driven by negative credit migration in the energy loan book. We believe BOKF's balanced business model between banking (60% of revenues) and fee service businesses (40% of revenues) allows the company to serve more of their clients' needs while reducing volatility in financial results. In our view, the macro low rate environment will prove to be less important for BOKF than the positive impact of its diversified business model, underwriting disciplines and the experienced management team led by Chairman and majority owner George Kaiser.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter 2020 commentary.
