TULSA, OK / ACCESS Newswire / October 1, 2025 / BOK Financial Corporation (NASDAQ:BOKF) will host a conference call to review third quarter 2025 financial results at noon central time on Tuesday, October 21, 2025. The call may also include discussion of company developments, forward-looking statements and other material information about business and financial matters. ...

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Key Takeaways BOK Financial gained 16% in three months, beating the industry's average. Loan and deposit growth, stronger NIM, and credit quality trends aid BOK Financial. Rising expenses and heavy exposure to commercial loans are key risks for BOK Financial. BOK Financial Corporation (BOKF) shares have gained 16% in the past three months, outperforming the industry’s growth of 9.2%. Meanwhile, BOKF peers Cullen/Frost Bankers, Inc. (CFR) and First Horizon Corporation (FHN) have risen 1.9% and 16.9%, respect ...

Core Viewpoint - BOK Financial's recent earnings report shows mixed results, with adjusted earnings per share beating estimates but a decline in net income and revenues year over year [3][4][5]. Financial Performance - The second-quarter 2025 adjusted earnings per share was $2.19, surpassing the Zacks Consensus Estimate of $1.98, but down 13.8% from the prior year [3]. - Net income attributable to shareholders was $140 million, a decline of 14.5% year over year [4]. - Quarterly net revenues were $535.2 million, down 3.6% year over year, but above the Zacks Consensus Estimate of $517.9 million [5]. Revenue and Expenses - Net interest income increased to $328.2 million, up 10.8% year over year, with the net interest margin expanding by 24 basis points to 2.80% [5]. - Total fees and commissions were $197.3 million, down 1.3% year over year, primarily due to lower brokerage and trading revenues [5]. - Total operating expenses rose to $354.5 million, an increase of 5.3% year over year, mainly due to higher personnel costs [6]. Loan and Deposit Trends - Total loans reached $24.3 billion, up 2.5% from the prior quarter, driven by growth in commercial real estate loans and loans to individuals [7]. - Total deposits slightly declined to $38.2 billion, attributed to reduced demand and savings [7]. Credit Quality - Non-performing assets decreased to $81 million, or 0.33% of outstanding loans, down from $93 million, or 0.38%, in the prior year [8]. - The company recorded no provisions for credit losses, compared to $8 million in the prior year [8]. Capital Ratios and Profitability - The common equity Tier 1 capital ratio improved to 13.59%, up from 12.10% a year earlier [9]. - Return on average equity was 9.70%, down from 12.79% in the previous year [10]. 2025 Outlook - The company anticipates loan growth in the mid to upper single-digit range and expects net interest income to be between $1.33 billion and $1.38 billion, up from $1.2 billion in 2024 [11]. - Total revenues are projected to grow in the mid to upper-single-digit range from $2.05 billion in 2024 [12]. - Provisions for credit losses are expected to remain below $18 million, compared to earlier guidance of $20–$40 million [12]. Market Sentiment - Investors have observed a flat trend in fresh estimates over the past month [13]. - BOK Financial has an average Growth Score of C and a value score of B, resulting in an aggregate VGM Score of B [14]. - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [15].

Financial Performance - Net income for Q2 2025 was $140 million, with earnings per diluted share of $2.19 [2] - Total fees and commissions increased by 7.2% sequentially, with several fee lines achieving record quarterly revenue [4][26] - Trading revenue reached $30.5 million, up 31% quarter on quarter as market conditions normalized [4][11] Loan Growth - Total outstanding loans rose 2.5% sequentially, annualizing above 10%, driven by growth in commercial real estate, core commercial and industrial lending, and loans to individuals [3][19] - The commercial real estate portfolio grew 6.9% quarter over quarter, primarily in multifamily housing, retail, and industrial project lending [3][22] - Specialty lending portfolio decreased by 1.6% quarter over quarter, with a 4.4% contraction in energy lending, partially offset by a 0.5% expansion in healthcare [4][20] Wealth Management - Assets under management and administration increased by $3.9 billion sequentially to a record $117.9 billion, attributed to market appreciation and new business [5][26] - Fiduciary and asset management revenue grew by $3 million, reflecting higher trust and mutual fund fees [26] Net Interest Income and Capital - Net interest income increased by $11.9 million, with reported net interest margin expanding by two basis points [6][28] - Tangible common equity rose to 9.6%, and common equity tier 1 capital reached 13.6% after share repurchases and redemption of Tier 2 capital instruments [6][18] Credit Quality - Allowance for credit losses was $330 million, or 1.36% of loans, with nonperforming assets not guaranteed by the U.S. government decreasing by $4 million to $70 million [7][24] - Net charge-offs were minimal at $561,000, maintaining recent averages of one basis point over the last twelve months [7][24] Expense Management - Total expenses rose by $7 million quarter over quarter, with nonpersonnel costs increasing due to higher technology project costs and operational losses [8][30] - Personnel costs remained stable, with a slight increase in compensation offset by lower payroll taxes [8][30] Future Outlook - The company expects full-year loan growth, net interest income, and fee income guidance to remain unchanged for fiscal 2025, despite lingering economic policy uncertainties [12][31] - The launch of the mortgage finance and warehouse lending business is anticipated to support future loan growth, with expectations to reach $500 million in commitments by year-end 2025 [9][63]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's financial performance, condition, market risks, and internal controls, including unaudited financial statements [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=4&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) BOK Financial reported strong Q2 2025 results with net income of $140.0 million, driven by increased net interest income and fees, robust loan growth, stable credit quality, and strong capital position [Performance Summary](index=4&type=section&id=Performance%20Summary) This section provides a comparative overview of key financial performance metrics for the current quarter and year-to-date periods Q2 2025 vs Q1 2025 Performance | Metric | Q2 2025 ($) | Q1 2025 ($) | | :--- | :--- | :--- | | Net Income | $140.0 million | $119.8 million | | Diluted EPS ($) | $2.19 | $1.86 | | Pre-Provision Net Revenue (PPNR) ($) | $180.7 million | $154.8 million | | Net Interest Income ($) | $328.2 million | $316.3 million (implied) | | Net Interest Margin (%) | 2.80% | 2.78% | | Fees and Commissions Revenue ($) | $197.3 million | $184.1 million | | Period End Loans ($) | $24.3 billion | $23.7 billion (implied) | - No provision for expected credit losses was recorded in Q2 2025, attributed to improved portfolio credit quality offsetting the impact of loan growth. Net charge-offs were minimal at **$561 thousand**[14](index=14&type=chunk) - The company repurchased **663,298 shares** at an average price of **$93.99** in Q2 2025 and approved a new **5 million share** repurchase authorization on July 29, 2025[15](index=15&type=chunk) YTD 2025 vs YTD 2024 Performance | Metric | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | Net Interest Income | $644.4 million | $589.6 million | | Fees and Commissions Revenue | $381.4 million | $400.6 million | | Total Operating Expense | $702.0 million | $677.0 million | | Provision for Credit Losses | $0 | $16.0 million | [Results of Operations](index=6&type=section&id=Results%20of%20Operations) This section analyzes the drivers behind changes in net interest income, other operating revenue, and operating expenses - Net interest income increased QoQ due to a **$1.4 billion** rise in average earning assets, primarily in trading and AFS securities, and a **2 basis point** expansion in net interest margin to **2.80%**[17](index=17&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) - Other operating revenue grew by **$21.1 million** QoQ to **$207.1 million**, driven by broad-based growth in fees and commissions, particularly a **$7.1 million** increase in brokerage and trading revenue[26](index=26&type=chunk)[27](index=27&type=chunk) - Other operating expense increased by **$7.0 million** QoQ to **$354.5 million**, mainly due to higher operational losses and costs related to technology projects[44](index=44&type=chunk)[47](index=47&type=chunk) [Reportable Segments](index=14&type=section&id=Reportable%20Segments) This section details the financial performance and key drivers for each of the company's reportable business segments Net Income Before Taxes by Segment (Q2 2025 vs Q1 2025) | Segment | Q2 2025 ($) | Q1 2025 ($) | % Change | | :--- | :--- | :--- | :--- | | Commercial Banking | $141.6 million | $140.0 million | 1% | | Consumer Banking | $24.7 million | $22.1 million | 12% | | Wealth Management | $40.7 million | $32.7 million | 25% | | **Segment Total** | **$207.1 million** | **$194.8 million** | **6%** | - Commercial Banking's pre-tax income rose **1%** QoQ, as an **$8.9 million** increase in other operating revenue (from merchant banking and syndication fees) offset a **$2.4 million** decline in net interest income[57](index=57&type=chunk)[58](index=58&type=chunk) - Consumer Banking's pre-tax income grew **12%** QoQ, primarily due to a **$1.8 million** decrease in operating expenses and lower net loan charge-offs[62](index=62&type=chunk)[63](index=63&type=chunk) - Wealth Management's pre-tax income surged **25%** QoQ, driven by a **$7.7 million** increase in combined net interest and fee revenue from higher trading activities[65](index=65&type=chunk)[66](index=66&type=chunk) [Financial Condition](index=19&type=section&id=Financial%20Condition) This section reviews the company's financial position, including loan portfolio composition, credit quality, and liquidity metrics - The loan portfolio grew by **$602 million** QoQ to **$24.3 billion**, led by increases in commercial real estate and loans to individuals[73](index=73&type=chunk) - The energy loan portfolio decreased by **$126 million** to **$2.7 billion**, or **11%** of total loans, due to elevated payoff activity[79](index=79&type=chunk) - The combined allowance for credit losses stood at **$330 million**, or **1.36%** of outstanding loans, at June 30, 2025[14](index=14&type=chunk)[114](index=114&type=chunk) - The loan-to-deposit ratio was **64%** at quarter-end, indicating significant on-balance sheet liquidity[129](index=129&type=chunk) [Liquidity and Capital](index=33&type=section&id=Liquidity%20and%20Capital) This section assesses the company's liquidity position and capital adequacy, including key regulatory ratios and shareholder return initiatives Key Capital Ratios | Ratio | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.59% | 13.31% | | Tier 1 Capital | 13.60% | 13.31% | | Total Capital | 14.48% | 14.54% | | Leverage Ratio | 9.88% | 10.02% | | Tangible Common Equity Ratio | 9.63% | 9.48% | - Average deposits for Q2 2025 were **$38.1 billion**, a slight decrease of **$222 million** from Q1 2025, primarily from a reduction in demand deposits[131](index=131&type=chunk) - The company redeemed all outstanding subordinated debt and junior subordinated debentures during the second quarter of 2025[145](index=145&type=chunk) - A new share repurchase authorization for up to **five million shares** was approved on July 29, 2025, replacing the previous plan[148](index=148&type=chunk) [Market Risk](index=39&type=section&id=Market%20Risk) The company manages interest rate risk, MSR, and trading portfolio exposures within board-approved limits, with the balance sheet being asset-sensitive to rate changes Interest Rate Sensitivity on Net Interest Income (as of June 30, 2025) | Rate Change | Impact over next 12 months ($) | Impact over next 12 months (%) | | :--- | :--- | :--- | | +200 bp | $(38,600) thousand | (2.79)% | | +100 bp | $(15,100) thousand | (1.09)% | | -100 bp | $11,100 thousand | 0.80% | | -200 bp | $26,200 thousand | 1.89% | - The company actively manages market risk for its Mortgage Servicing Rights (MSR) portfolio. A **50 basis point** increase in rates would result in a net exposure loss of **$460 thousand**, while a **50 basis point** decrease would result in a net loss of **$2.73 million**, both well within the **$20 million** board-approved limit[170](index=170&type=chunk)[171](index=171&type=chunk) - For trading activities, the company uses Value at Risk (VaR) and Stressed VaR (SVaR) to measure potential losses. For Q2 2025, the average **10-day 99% VaR** was **$1.9 million** and the average **SVaR** was **$7.0 million**[177](index=177&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) [Controls and Procedures](index=45&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the second quarter of 2025[186](index=186&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[186](index=186&type=chunk) [Consolidated Financial Statements – Unaudited](index=46&type=section&id=Consolidated%20Financial%20Statements%20%E2%80%93%20Unaudited) This section presents the unaudited consolidated financial statements, including balance sheet, earnings, and cash flow highlights for the periods ended June 30, 2025 Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 ($) | Dec. 31, 2024 ($) | | :--- | :--- | :--- | | Total Assets | $50,998,077 thousand | $49,685,892 thousand | | Loans, net | $24,015,162 thousand | $23,834,689 thousand | | Total Deposits | $38,246,109 thousand | $38,191,230 thousand | | Total Liabilities | $45,104,721 thousand | $44,134,935 thousand | | Total Shareholders' Equity | $5,890,888 thousand | $5,548,353 thousand | Consolidated Statement of Earnings Highlights (Unaudited) | Account | Three Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2025 ($) | | :--- | :--- | :--- | | Net Interest Income | $328,166 thousand | $644,417 thousand | | Provision for Credit Losses | $0 | $0 | | Total Other Operating Revenue | $207,098 thousand | $393,139 thousand | | Total Other Operating Expense | $354,503 thousand | $702,032 thousand | | Net Income | $140,070 thousand | $259,841 thousand | [Part II. Other Information](index=101&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other miscellaneous information, including required exhibits [Item 1. Legal Proceedings](index=101&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a stayed putative class action lawsuit, with management believing a loss is not probable due to valid defenses - BOKF, NA is a defendant in a putative class action lawsuit from 2016 alleging participation in the fraudulent sale of securities related to its role as a trustee for municipal bonds. The case remains stayed[279](index=279&type=chunk) - Management, based on counsel's opinion, believes it has valid defenses and that a loss is not probable. No provision for losses has been made[281](index=281&type=chunk) [Item 1A. Risk Factors](index=101&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K were reported - No material changes from the risk factors disclosed in the 2024 Form 10-K were reported[337](index=337&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=101&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **671,074 shares** in Q2 2025 and approved a new **5 million share** repurchase authorization on July 29, 2025 Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April 2025 | 246,557 | $92.30 | | May 2025 | 297,487 | $95.15 | | June 2025 | 127,030 | $94.70 | | **Total** | **671,074** | **N/A** | - On July 29, 2025, the board approved a new share repurchase authorization for up to **five million shares**, replacing the previous plan from November 2022[339](index=339&type=chunk) [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) No company director or officer adopted, modified, or terminated any trading arrangements during Q2 2025 - No director or officer adopted, modified, or terminated any trading arrangements in Q2 2025[340](index=340&type=chunk) [Item 6. Exhibits](index=102&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Interactive Data Files (XBRL) - Exhibits filed include CEO/CFO certifications (**31.1, 31.2, 32**) and Interactive Data Files (**101, 104**)[342](index=342&type=chunk)

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [5] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8][10] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10][11] Company Spotlight: BOK Financial - BOK Financial Corporation is a regional financial services company based in Tulsa, OK, with various operating divisions and subsidiaries [12] - BOKF holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, with a Momentum Style Score of A, reflecting an 8.5% increase in shares over the past four weeks [13][14] - Recent upward revisions in earnings estimates indicate a positive outlook for BOKF, with the Zacks Consensus Estimate rising by $0.20 to $8.34 per share [13]

Core Viewpoint - BOK Financial Corporation reported strong financial results for the second quarter of 2025, with earnings of $140 million and earnings per share (EPS) of $2.19 per diluted share [5]. Group 1: Financial Performance - The company achieved earnings of $140 million for the second quarter of 2025 [5]. - The EPS for the quarter was reported at $2.19 per diluted share [5]. Group 2: Management Commentary - The call included insights from key executives, with CEO Stacy Kymes discussing the loan portfolio and credit metrics, while Scott Grauer covered fee-based results, and CFO Marty Grunst provided financial performance details and forward guidance [3].

Bok Financial (BOKF -0.88%), a regional banking and financial services company active across the Southwest and Midwest, delivered results that surpassed analyst expectations, reporting GAAP earnings per share of $2.19 versus an expected $1.99, and GAAP revenue of $525.5 million compared to the $520.06 million estimate. The results, released July 21, 2025, covered the quarter ending June 30. There was growth in both net interest and fee income, offset by rising operating costs, mainly in technology and profe ...

Financial Data and Key Metrics Changes - The company reported earnings of $140 million, translating to an EPS of $2.19 per diluted share for the second quarter, indicating a positive momentum in financial performance [4] - Net interest income grew for the fifth consecutive quarter, with a reported increase of $11.9 million and net interest margin expanding by two basis points [19] - Total outstanding loans increased by 2.5% quarter-over-quarter, representing over 10% on an annualized basis [9] Business Line Data and Key Metrics Changes - Fee income rose by 7.2% sequentially, with total fees and commissions contributing $197.3 million to revenue [5][15] - The core C and I loan portfolio grew by 1.1%, driven by Native American lending and general business loans, while the specialty lending portfolio decreased by 1.6% [9] - Trading revenue increased by 31% from the prior quarter, reaching $30.5 million, as trading activity normalized [15] Market Data and Key Metrics Changes - The commercial real estate (CRE) business saw a quarter-over-quarter increase of 6.9%, primarily from multifamily housing, retail, and industrial projects [10] - The company maintained a loan-to-deposit ratio of 64%, positioning itself well for optimizing deposit pricing [6] Company Strategy and Development Direction - The company plans to launch a new mortgage finance line of business to support future loan growth, which is expected to enhance long-term sustainable growth [5][11] - The management emphasized a focus on organic growth, with M&A being a secondary strategy, indicating a selective approach to acquisitions [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan growth projections for the full year, citing robust growth in Q2 and strong pipelines across C and I and CRE [21] - The economic policy uncertainty is acknowledged as a risk factor, but it appears less significant than it did ninety days ago [22] Other Important Information - The company repurchased over 660,000 shares below $94 per share and redeemed $131 million of Tier two capital instruments, indicating a commitment to shareholder value [6][7] - Credit quality remains strong, with nonperforming assets decreasing to $74 million and a combined allowance for credit losses at 1.36% of outstanding loans [13][14] Q&A Session Summary Question: Expectations for margin trajectory behind net interest income - Management indicated satisfaction with margin behavior, attributing expansion to fixed asset repricing and deposit pricing optimization [28][29] Question: Pace of loan growth through the quarter - Management noted that loan growth built throughout the quarter, with expectations for continued growth in the second half of the year [40][41] Question: Competitive environment for loan yields - Management acknowledged strong competition in key markets, with some spread compression observed in the C and I sector [44][45] Question: Guidance for fee income and factors affecting it - Management expressed confidence in continued growth across various fee income lines, driven by strong performance in fiduciary and asset management [54][55] Question: Outlook for mortgage finance and expected balances - Management anticipates approximately $500 million in commitments by year-end, with a focus on operational risk management [86][88] Question: Expectations for deposit growth and funding loan growth - Management expects to continue growing deposits while maintaining a strong loan-to-deposit ratio, with cash flows from the bond and loan books supporting growth [108][109]