Core Insights - Mortgage rates have reached their highest level since October 9, following the Federal Reserve's recent decision to lower the short-term benchmark rate, with analysts expressing disappointment over the lack of a clear indication for a December rate cut [1][2]. Group 1: Federal Reserve Actions - The Federal Reserve lowered its short-term benchmark rate by 0.25 percentage points to a range of 3.75%-4% on October 29 [1]. - Fed Chair Jerome Powell indicated that a December rate cut is "not a foregone conclusion," which has dampened market expectations for further cuts [1][3]. - The CME Fed Watch tool showed a decrease in the probability of a rate cut at the next meeting, dropping from 91.1% to 66.6% after the Fed meeting [2]. Group 2: Mortgage Rate Trends - Mortgage rates increased from approximately 6.13% to 6.27% immediately after Powell's comments, and further rose to 6.33% on October 30 [2]. - Historical trends indicate that mortgage rates often rise even when the Fed cuts rates, as seen in previous instances [4]. Group 3: Market Predictions - BOK Financial predicts that mortgage rates may ease slightly to around 5.9% to 6.0% due to cooler inflation and a slower labor market [5]. - Despite potential easing, the "lock-in effect" is constraining inventory and keeping home prices elevated, with over 80% of mortgages below 6% [7]. Group 4: Impact on Homeowners - The recent rate cut will lower Home Equity Line of Credit (HELOC) rates, benefiting existing homeowners [8].

Financial Performance - BOK Financial reported net income of $140.9 million, or $2.22 per diluted share, for Q3 2025, compared to $140.0 million, or $2.19 per diluted share, in Q2 2025[10]. - The company reported a net change in fair value of $2.92 billion for the three months ended September 30, 2025[31]. - Net income before taxes for the segments was $190.9 million in Q3 2025, a decrease of $15.9 million or 8% from Q2 2025[50]. - Net income before taxes from Consumer Banking decreased by $10.3 million, or 41%, to $14.5 million for the third quarter of 2025[59]. - Net income attributable to BOK Financial Corporation shareholders for Q3 2025 was $140,894,000, compared to $139,999,000 in Q3 2024, reflecting a slight increase of 0.6%[192]. Revenue and Income Sources - Net interest income totaled $337.6 million, an increase of $9.5 million over the prior quarter, with a net interest margin expanding 11 basis points to 2.91%[10]. - Fees and commissions revenue reached $204.4 million, up $7.1 million from the previous quarter, driven by increased municipal underwriting activity[10]. - Other operating revenue increased to $210.7 million for the third quarter of 2025, up $3.6 million from the second quarter of 2025, driven by growth in investment banking revenue[21]. - Total tax-equivalent interest revenue for the third quarter of 2025 was $9.5 million, a decrease of $3.9 million compared to the previous quarter[20]. - Total other operating revenue for the nine months ended September 30, 2025, was $603,848,000, down from $629,597,000 in the same period of 2024, a decline of 4.1%[191]. Loan and Deposit Growth - Period end outstanding loan balances grew by $573 million to $24.9 billion, with average loan balances increasing by $650 million to $24.8 billion[10]. - Period end deposits increased by $254 million to $38.5 billion, with a loan to deposit ratio of 65%[10]. - Average outstanding loan balances attributed to Commercial Banking increased by $386 million, or 2%, to $20.3 billion over the second quarter of 2025[56]. - Average deposits for the third quarter of 2025 reached $38.481 billion, an increase of $345 million or 0.9% compared to the second quarter of 2025[130]. - Total deposits for BOK Financial reached $38.5 billion as of September 30, 2025, an increase from $38.2 billion in the previous quarter[138]. Expenses and Efficiency - Other operating expense for Q3 2025 totaled $369.8 million, an increase of $15.3 million from Q2 2025, with an efficiency ratio of 66.66%[39]. - Personnel expense was $226.3 million, up $11.6 million compared to Q2 2025, driven by a $5.4 million increase in cash-based incentive compensation due to stronger underwriting and loan origination activity[40]. - Non-personnel expense increased to $143.4 million, reflecting a $4.0 million rise in mortgage banking costs[41]. - The efficiency ratio for Q3 2025 was 66.66%, indicating the company's ability to manage its expenses relative to its income[155]. Capital and Equity - The tangible common equity ratio improved to 10.06% at September 30, 2025, up from 9.63% at June 30, 2025[10]. - As of September 30, 2025, the company's equity capital was $6.0 billion, reflecting a $132 million increase from June 30, 2025[145]. - The common equity Tier 1 capital ratio stood at 13.60% as of September 30, 2025, significantly above the minimum requirement of 4.50%[150]. - The total capital surplus as of September 30, 2025, was $1,447,084, an increase from $1,441,326 as of June 30, 2025, representing a growth of approximately 0.4%[195]. - Net income less cash dividends paid contributed to a $105 million increase in equity during Q3 2025[145]. Credit Quality and Losses - The provision for expected credit losses was $2.0 million in Q3 2025, reflecting loan growth, while net charge-offs were $3.6 million, or 0.06% of average loans[10]. - The total provision for credit losses for the quarter was $2,000 thousand, with an ending balance for the allowance for loan losses at $277,692 thousand, up from $277,049 thousand at June 30, 2025[110]. - Net charge-offs in Q3 2025 were $3.6 million, or 0.06% of average loans on an annualized basis, primarily due to a single commercial services loan[118]. - Total nonperforming assets decreased to $74.145 million at September 30, 2025, from $81.056 million at June 30, 2025[124]. - The allowance for loan losses to nonaccruing loans was 426.92% at September 30, 2025[124]. Market and Economic Outlook - The economic outlook includes a GDP growth forecast of 1.6% over the next 12 months, with a civilian unemployment rate of 4.5% in Q4 2025[117]. - The company anticipates three rate cuts over the next four quarters, bringing the federal funds target range to 3.25%[117]. - WTI oil prices are projected to average $57.08 per barrel over the next 12 months[117]. - The probability weighting for economic scenarios remained unchanged, with a 50% base case, 35% downside, and 15% upside[114]. Shareholder Returns - A regular cash dividend of $36.1 million, or $0.57 per common share, was paid during Q3 2025, with an increase to $0.63 per share approved for the next quarter[11]. - The company repurchased 365,547 shares of common stock at an average price of $111.00 per share in Q3 2025[10]. - Dividends declared per share increased to $0.57 in Q3 2025 from $0.55 in Q3 2024, representing a growth of 3.6%[191]. - The company repurchased 366 shares of common stock for a total amount of $(40,981) during the quarter[195].

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Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [4] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [4][7] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][14] - Fee income grew by 3.6% sequentially, contributing to overall performance [6] Business Line Data and Key Metrics Changes - The core commercial and industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [7][8] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [8] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [11] Market Data and Key Metrics Changes - Assets under management (AUMA) grew by 4.1% to $122.7 billion, marking the highest quarter on record [12] - The company maintained a strong liquidity profile with a loan-to-deposit ratio in the mid-60% range, providing strategic flexibility [5] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, particularly in commercial real estate and core CNI, while being cautious about energy sector exposure [22] - M&A opportunities are considered, but the company prioritizes organic growth and share repurchases as primary uses of capital [24][25] - The launch of mortgage finance is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [32][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions from M&A activity [22] - The company anticipates that net charge-offs will remain well below historical norms, supported by strong credit quality [9][17] - Future guidance includes expectations for loan growth of 5 to 7% and net interest income between $1.325 billion and $1.35 billion [16][17] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter [6] - Credit quality remains a core strength, with a combined allowance for credit losses at 1.32% of outstanding loans [9][10] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [20][22] Question: Capital allocation and M&A considerations - The company prioritizes organic growth and share repurchases, with M&A being a secondary consideration, focusing on strong core deposit franchises [24][25] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [30] Question: Mortgage finance growth potential - The company expects significant growth in mortgage finance, with a target of $500 million in commitments by year-end and a strong appetite for growth in 2026 [32][42] Question: Fee income range and guidance - Management acknowledged the challenges in predicting fee income but expressed confidence in good activity across various fee-generating businesses [38] Question: Credit quality and charge-off expectations - Management reiterated strong credit quality and low charge-off expectations, with a long-term average loss rate projected around 20 to 25 basis points [66][67]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [4] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [4][7] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][14] - Fee income grew by 3.6% sequentially, contributing to overall performance [6] Business Line Data and Key Metrics Changes - The core Commercial and Industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [7][8] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [8] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [11] Market Data and Key Metrics Changes - Assets Under Management (AUMA) grew to over $122 billion, marking a 4.1% increase in the third quarter [12] - The company maintained a strong liquidity profile with a loan-to-deposit ratio in the mid-60% range, providing strategic flexibility [5] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, particularly in commercial real estate and CNI, while being cautious about energy sector exposure [22] - M&A opportunities are considered, but the company prioritizes organic growth and share repurchases as primary capital allocation strategies [24][25] - The launch of the mortgage finance business is expected to contribute significantly to loan growth in the coming quarters [32][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions from M&A activity [22] - The company anticipates net charge-offs to remain well below historical norms, supported by strong credit quality [9][17] - Future guidance includes expectations for loan growth of 5% - 7% and net interest income between $1.325 billion and $1.35 billion for the full year [17] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [6] - The combined allowance for credit losses is $328 million, representing a healthy 1.32% of outstanding loans [9] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [20][22] Question: Capital allocation and M&A considerations - The company prioritizes organic growth and share repurchases, with M&A being a secondary consideration depending on strategic value [24][25] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [30] Question: Mortgage finance business potential - The company expects to achieve $500 million in commitments by year-end, with significant growth anticipated in 2026 [32][42] Question: Fee income guidance and expense expectations - Management provided insights into the challenges of predicting fee income but expressed optimism about growth dynamics across various fee businesses [38] Question: Credit quality and charge-off expectations - Management confirmed strong credit quality and low charge-off rates, with expectations for charge-offs to remain below historical norms [66][67]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [3][4] - Total outstanding loan balances increased by 2.4% sequentially, adding almost $1.2 billion over the past two quarters [3][6] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [4][13] - Fee income grew by 3.6% sequentially, contributing to overall performance [5][10] Business Line Data and Key Metrics Changes - The core Commercial and Industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [6][7] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [7] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [10] Market Data and Key Metrics Changes - Assets Under Management (AUMA) grew to over $122 billion, marking a 4.1% increase in the third quarter [5][11] - Non-performing assets decreased by $7 million to $67 million, with a non-performing assets to period loans ratio of 27 basis points [8] Company Strategy and Development Direction - The company aims to sustain growth momentum, particularly in the CNI and CRE sectors, while maintaining a strong liquidity profile [4][16] - There is a focus on organic growth, with share repurchases and dividends as secondary uses of capital, while M&A opportunities are considered cautiously [22][23] - The launch of the mortgage finance business is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining loan growth despite competitive pressures and market disruptions from M&A activity [20][21] - The outlook for net interest income is projected between $1.325 billion and $1.35 billion, with expectations for continued growth in loans and deposits [16][18] - Credit quality remains strong, with expectations for low charge-offs and a healthy allowance for credit losses [8][72] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [5][6] - Total expenses increased by $15.3 million, primarily due to personnel expenses related to workforce realignment [13][15] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [19][20] Question: Capital allocation and M&A considerations - The company prioritizes organic growth but remains open to M&A opportunities that align with strategic goals, emphasizing caution in execution [22][23] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [26][27] Question: Mortgage finance business potential - The mortgage finance business is expected to grow significantly, with a target of $500 million in commitments by year-end and a strong growth outlook for 2026 [30][37] Question: Fee income range and guidance - Management discussed the challenges in providing precise guidance for fee income but noted strong activity across various fee-generating businesses [32][33] Question: Credit quality and charge-off expectations - The company maintains a strong credit quality outlook, with expectations for charge-offs to remain low in the near term [56][72]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, or EPS of $2.22 per diluted share for Q3 2025, reflecting continued momentum and confidence in future growth [4][5] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [5][9] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][22] Business Line Data and Key Metrics Changes - The core C and I loan portfolio grew by 1.4% quarter over quarter, while specialized lending portfolios showed slight increases, particularly in healthcare loans [10][11] - The commercial real estate (CRE) business increased by 4.2% quarter over quarter, with expectations for continued growth in outstanding balances [12] - Fee income grew by 3.6% sequentially, with a record quarter for investment banking revenue driven by municipal bond underwriting [7][8] Market Data and Key Metrics Changes - Assets Under Management (AUMA) reached over $122.7 billion, marking a 4.1% increase in the third quarter [20] - The company maintained strong capital levels, with TCE growing to 10.1% and CET1 reaching 13.6% [8] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, with projections of 5% to 7% growth for the full year [25] - There is a focus on organic growth, with share repurchases and dividends as secondary uses of capital, while M&A opportunities are considered cautiously [36][39] - The launch of the mortgage finance business is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions [33][34] - The company anticipates that credit quality will remain strong, with expectations for low charge-offs and a healthy allowance for credit losses [15][26] - The management highlighted the importance of adapting to market conditions and maintaining a strong liquidity profile [6][22] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [8] - The combined allowance for credit losses is $328 million, representing 1.32% of outstanding loans, indicating a healthy reserve level [15] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures and market disruptions [31][33] Question: Capital allocation and M&A considerations - The company prioritizes organic growth, followed by share repurchases and dividends, while remaining open to M&A opportunities that provide strategic value [36][39] Question: Core margin trends and expectations - Management expects a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [43][44] Question: Mortgage finance business growth potential - The company anticipates significant growth in the mortgage finance business, with a target of $500 million in commitments by year-end and plans for aggressive growth in 2026 [46][48] Question: Fee income range and expense guidance - Management provided insights into the fee income range, indicating strong activity across various business lines, while also discussing expense growth and expectations for moderation in the future [51][56]

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Core Insights - BOK Financial Corporation (BOKF) reported Q3 2025 earnings of $2.22 per share, exceeding the Zacks Consensus Estimate of $2.10, marking a 1.8% increase from the previous year [1][10] - The company's performance was driven by higher net interest income and total fees and commissions, alongside an increase in loans and deposits, although rising operating expenses posed a challenge [1][10] Financial Performance - Net income attributable to shareholders reached $140.9 million, showing a slight year-over-year increase [2] - Quarterly net revenues amounted to $548.3 million, a 6.2% increase year-over-year, surpassing the Zacks Consensus Estimate of $533.7 million [3] - Net interest income was reported at $337.6 million, reflecting a 9.6% year-over-year growth, with the net interest margin expanding by 23 basis points to 2.91% [3] - Total fees and commissions increased to $204.4 million, nearly 1% higher year-over-year, driven by various revenue streams [4] Operating Expenses - Total other operating expenses rose to $369.8 million, an 8.4% increase year-over-year, primarily due to higher personnel costs [4] - The efficiency ratio increased to 66.66% from 65.11% in the prior year, indicating a decline in profitability [5] Loan and Deposit Growth - As of September 30, 2025, total loans reached $24.8 billion, up 2.3% from the prior quarter, mainly due to growth in commercial loans [6] - Total deposits slightly increased to $38.5 billion, driven by higher interest-bearing transaction accounts and time deposits [6] Credit Quality - Non-performing assets decreased to $74 million, or 0.30% of outstanding loans, down from $87 million or 0.36% in the prior year [7] - Provisions for credit losses remained stable at $2 million, while net charge-offs were $3.6 million compared to net recoveries of $54 thousand in the previous year [7] Capital Ratios and Profitability - As of September 30, 2025, the common equity Tier 1 capital ratio improved to 13.60% from 12.73% a year earlier, with tier 1 and total capital ratios also showing improvement [11] - Return on average equity decreased to 9.38% from 10.22% year-over-year, while return on average assets slightly declined to 1.08% from 1.09% [11] Share Repurchase - During the reported quarter, BOK Financial repurchased 365,547 shares at an average price of $111 per share [12] Overall Assessment - BOK Financial's strong net interest income and solid loan balances support its overall performance, although rising operating expenses are a concern [13]

Financial Performance - Net income reached $140.9 million, translating to $2.22 per diluted share[11, 13] - Net interest margin expanded by 11 basis points to 2.91%, while core net interest margin, excluding trading, increased by 4 basis points to 3.16%[13, 36] - Pre-provision net revenue was $178.6 million[11] Loan and Deposit Growth - Period-end loans grew by $573 million, a 2.4% increase, reaching $24.9 billion, driven by growth in core C&I portfolio, commercial real estate, and loans to individuals[13, 14] - Average deposits increased by $345 million in Q3, primarily due to interest-bearing transaction and time deposit balances[15] - Assets under management or administration increased by $4.8 billion to $122.7 billion, driven by higher market valuations and new business growth[15] Asset Quality and Credit Metrics - Non-performing assets, excluding loans guaranteed by U S government agencies, totaled $67 million, representing 0.27% of outstanding loans and repossessed assets[13, 25] - Net charge-offs were $3.6 million during Q3[13, 25] - The combined allowance for credit losses was $328 million, or 1.32% at quarter end[25] Fee Income and Revenue - Investment banking revenue grew by $5.0 million, reflecting strong municipal bond underwriting activity[28] - Trading fee income increased by $1.1 million due to increased municipal bond trading and a more stable market environment[27] - Total fees and commissions reached $204.4 million, a $7.1 million increase, or 3.6%[32] Expenses and Efficiency - Total operating expenses increased by $15.3 million to $369.8 million, a 4.3% increase[43] - Personnel expenses increased by $11.6 million, a 5.4% increase[43] - The efficiency ratio was 66.7%[11, 43] Outlook - The company anticipates end-of-period loan growth of 5%-7% for the full year 2025, with 2024 actuals being $24.1 billion[46] - Net interest income is projected to be between $1.325 billion and $1.35 billion for FY25, compared to $1.2 billion in 2024[46]