UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission File No. 001-37811 BOK FINANCIAL CORP (Exact name of registrant as specified in its charter) Oklahoma 73-1373454 (State or oth ...

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BOK Financial Corporation (NASDAQ:BOKF) Q2 2025 Earnings Call July 22, 2025 1:00 PM ET Company Participants Heather Worley - Senior VP & Director of Investor Relations Stacy Kymes - CEO, President & Director Scott Grauer - Executive Vice President of Wealth Management Martin Grunst - Executive VP & CFO Conference Call Participants Jared David Shaw - Barclays Bank PLC, Research Division Jon Arfstrom - RBC Capital Markets, Research Division Brett Rabatin - Hovde Group, LLC, Research Division Michael Rose - Ra ...

BOK Financial (BOKF) Q2 2025 Earnings Call July 22, 2025 01:00 PM ET Company ParticipantsHeather King - Director - IRStacy Kymes - CEO, President & DirectorScott Grauer - EVP - Wealth ManagementMartin Grunst - EVP & CFOJared Shaw - Managing DirectorJon Arfstrom - MD & Associate Director - US ResearchBrett Rabatin - Director - ResearchMichael Rose - Managing DirectorWoody Lay - Vice PresidentMatt Olney - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchOperatorGreetings. Welcome to BO ...

Financial Data and Key Metrics Changes - The company reported earnings of $140 million, or 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 loan to deposit ratio of 64% and total capital levels remaining robust, with TCE reaching 9.6% and CET1 reaching 13.6% [6][7] - Total outstanding loans increased by 2.5% quarter over quarter, translating to over 10% on an annualized basis [8] Business Line Data and Key Metrics Changes - Fee income increased by 7.2% sequentially, with total fees and commissions contributing $197.3 million to revenue [5][14] - The core C and I loan portfolio grew by 1.1%, while the specialty lending portfolio decreased by 1.6% [8] - The commercial real estate (CRE) business saw a significant increase of 6.9% quarter over quarter, primarily driven by multifamily housing, retail, and industrial projects [9] Market Data and Key Metrics Changes - The trading revenue, including trading-related net interest income, was $30.5 million, representing a growth of 31% from the prior quarter [14] - Assets Under Management (AUMA) increased by $3.9 billion to $117.9 billion, reflecting increased market valuations and continued new business growth [16] 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][10] - The management emphasized the importance of investing in talent and systems to enable future growth, despite the increase in current period expenses [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the loan growth outlook set at the beginning of the year, despite acknowledging economic policy uncertainty as a risk factor [21][22] - The company expects net charge-offs to remain below historical norms, supported by strong credit quality across the loan portfolio [12][22] Other Important Information - The company repurchased over 660,000 shares below $94 per share and redeemed all $131 million of Tier two capital instruments [7] - The combined allowance for credit losses is $330 million, or 1.36% of outstanding loans, indicating a healthy reserve level [13] Q&A Session Summary Question: Expectations for margin trajectory behind NII - Management noted that margin behaved well in Q2, with good lift from fixed asset repricing and deposit pricing, expecting continued support for margin growth [27][28] Question: Loan growth pace through the quarter - Management indicated that loan growth built throughout the quarter, with expectations for continued growth in the second half of the year, particularly in C and I and CRE [36][39] Question: Competitive environment for loan yields - Management acknowledged strong competition in their markets, with some spread compression observed on the C and I side, but overall spreads are holding well [40][41] Question: Fee income guidance for the full year - Management expressed confidence in continued growth across various fee income lines, driven by strong performance in fiduciary and asset management, transaction card, and deposit service charges [49][50] Question: Outlook on mortgage finance and expected balances - Management expects to achieve approximately $500 million in commitments by the end of the year, with a utilization rate of around 25% to 50% [81][82] Question: Funding expectations for loan growth - Management indicated a strong loan to deposit ratio and expects to continue growing deposits, with cash flows from the bond book and loan book supporting funding needs [102][103]

Core Insights - BOK Financial Corporation (BOKF) reported better-than-expected second-quarter 2025 results, with earnings per share of $2.19, surpassing the Zacks Consensus Estimate of $1.98, although this represents a 13.8% decline from the prior-year quarter [1][8] Financial Performance - The company's net income attributable to shareholders was $140 million, down 14.5% year over year [2] - Quarterly net revenues totaled $535.2 million, a decline of 3.6% year over year, but exceeded the Zacks Consensus Estimate of $517.9 million [3] - Net interest income increased by 10.8% year over year to $328.2 million, with the net interest margin expanding by 24 basis points to 2.80% [3] - Total fees and commissions decreased by 1.3% year over year to $197.3 million, primarily due to lower brokerage and trading revenues [3] Expense and Efficiency Metrics - Total operating expenses rose to $354.5 million, an increase of 5.3% year over year, mainly driven by higher personnel costs [4] - The efficiency ratio increased to 65.42% from 59.83% in the prior year, indicating a deterioration in profitability [4] Loan and Deposit Trends - As of June 30, 2025, total loans reached $24.3 billion, reflecting a 2.5% increase from the prior quarter, driven by growth in commercial real estate loans and loans to individuals [5] - Total deposits slightly declined to $38.2 billion, attributed to reduced demand and savings [5] Credit Quality and Capital Ratios - Non-performing assets decreased to $81 million, or 0.33% of outstanding loans, down from $93 million or 0.38% in the prior-year quarter [6] - The company recorded no provisions for credit losses, compared to $8 million in the prior-year quarter, with net charge-offs down 91.9% to $561 thousand [6] - As of June 30, 2025, the common equity Tier 1 capital ratio improved to 13.59%, up from 12.10% a year earlier [7] Profitability Ratios - Return on average equity was 9.70%, down from 12.79% in the year-ago quarter, while return on average assets decreased to 1.07% from 1.29% [9] Share Repurchase Activity - During the reported quarter, BOK Financial repurchased 663,298 shares at an average price of $93.99 per share [10] Overall Assessment - The solid loan balance is expected to support top-line growth, while improving asset quality is a positive factor amid a challenging operating environment; however, rising operating expenses present a near-term concern [11]

Financial Performance - Net income for Q2 2025 was $140 million, or $2.19 per diluted share[11], compared to $119.8 million, or $1.86 per diluted share in Q1 2025[11, 14] - Net interest income increased by $11.9 million sequentially to $328.2 million[37, 39] - Total fees and commissions were $197.3 million, a 7.2% decrease year-over-year[34] - The efficiency ratio was 65.4% in Q2 2025, compared to 68.3% in Q1 2025[11] Balance Sheet - Period end loans grew by $602 million, or 2.5%, to $24.3 billion[14, 15] - Period end deposits decreased slightly by 0.1% to $38.2 billion[15] - Assets under management or administration increased by $3.9 billion to $117.9 billion[16] Asset Quality - Non-performing assets, excluding government guaranteed loans, were $74 million, representing 0.31% of outstanding loans and repossessed assets[14, 27] - Net charge-offs were $561 thousand during Q2[14, 27] - The allowance for credit losses was $330 million, or 1.36% of loans at quarter end[27] Outlook - The company expects mid to upper single-digit loan growth for the full year 2025[47] - Net interest income is projected to be between $1.325 billion and $1.375 billion for 2025, assuming two 25 basis point rate cuts[47]

Core Insights - BOK Financial (BOKF) reported revenue of $535.26 million for Q2 2025, a year-over-year increase of 7.9% and exceeding the Zacks Consensus Estimate of $517.95 million by 3.34% [1] - The company's EPS for the same period was $2.19, up from $2.02 a year ago, representing a surprise of 10.61% compared to the consensus estimate of $1.98 [1] Financial Performance Metrics - Efficiency Ratio stood at 65.4%, better than the average estimate of 67.2% from two analysts [4] - Average Interest Earning Assets were $46.98 billion, surpassing the average estimate of $45.99 billion [4] - Net Charge-Offs were 0% compared to the estimated 0.1% [4] - Net Interest Margin was 2.8%, aligning with the average estimate [4] - Total Non-Interest Income was $207.1 million, exceeding the estimated $196.65 million [4] - Net Interest Income (FTE) was reported at $330.74 million, above the average estimate of $325.05 million [4] - Net Interest Income was $328.17 million, compared to the average estimate of $322.8 million [4] Stock Performance - BOK Financial shares returned +13.7% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Company Performance - BOK Financial (BOKF) reported quarterly earnings of $2.19 per share, exceeding the Zacks Consensus Estimate of $1.98 per share, and up from $2.02 per share a year ago, representing an earnings surprise of +10.61% [1] - The company posted revenues of $535.26 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.34%, compared to year-ago revenues of $496.05 million [2] - Over the last four quarters, BOK Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Market Performance - BOK Financial shares have declined approximately 1% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.07 on revenues of $533.2 million, and for the current fiscal year, it is $8.13 on revenues of $2.1 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Southwest, which includes BOK Financial, is currently in the top 19% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

[Q2 2025 Financial Highlights & CEO Commentary](index=1&type=section&id=Q2%202025%20Financial%20Highlights%20%26%20CEO%20Commentary) BOK Financial Corporation reported strong Q2 2025 results with increased net income, expanded net interest margin, broad-based fee revenue growth, and significant loan growth [Financial Highlights](index=1&type=section&id=Financial%20Highlights) BOK Financial Corporation achieved strong Q2 2025 results, marked by increased net income, expanded net interest margin, broad-based fee revenue growth, and significant loan growth Q2 2025 Key Financial Metrics (vs. Q1 2025) | Metric | Q2 2025 | Change from Q1 2025 | | :--- | :--- | :--- | | **Net Income** | $140.0 million | +$20.2 million | | **Diluted EPS** | $2.19 | +$0.33 | | **Net Interest Income** | $328.2 million | +$11.9 million | | **Net Interest Margin** | 2.80% | +2 bps | | **Fees & Commissions Revenue** | $197.3 million | +$13.2 million | | **Period End Loans** | $24.3 billion | +$602 million | | **Period End Deposits** | $38.2 billion | Relatively Unchanged | | **Net Charge-offs (annualized)** | < 0.01% | - | | **Nonperforming Assets %** | 0.33% | -0.03% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) President and CEO Stacy Kymes highlighted the company's diverse business model, driven by accelerated loan growth, strong fee income, and continued net interest margin expansion - Key drivers for the quarter's success included: accelerated loan growth of over **$600 million**, fifth consecutive quarter of net interest income growth, core net interest margin expansion of **7 basis points**, and broad-based fee income growth with record highs in fiduciary/asset management, transaction card revenue, and deposit service charges[2](index=2&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) The company's financial performance improved due to increased net interest income, higher other operating revenue, and managed operating expenses [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income increased by **$11.9 million** to **$328.2 million** in Q2 2025, driven by a **2 basis point** expansion in net interest margin to **2.80%** Net Interest Income and Margin (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $328.2 million | $316.3 million | +$11.9 million | | **Net Interest Margin (NIM)** | 2.80% | 2.78% | +2 bps | | **Core NIM (Non-GAAP)** | 3.12% | 3.05% | +7 bps | | **Average Earning Assets** | $47.0 billion | $45.6 billion | +$1.4 billion | - The yield on average earning assets increased by **2 basis points** to **5.47%**, while total funding costs decreased by **2 basis points** to **3.40%**[5](index=5&type=chunk)[6](index=6&type=chunk) - Growth in average earning assets was primarily driven by a **$995 million** increase in average trading securities and a **$256 million** increase in average available-for-sale securities[4](index=4&type=chunk) [Other Operating Revenue](index=3&type=section&id=Other%20Operating%20Revenue) Total other operating revenue rose by **$21.1 million** to **$207.1 million**, primarily fueled by a **$13.2 million** increase in fees and commissions Fees and Commissions Revenue Breakdown (Q2 2025 vs Q1 2025) | Revenue Source | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Brokerage and trading** | $38.1 million | $31.1 million | +$7.1 million | | **Fiduciary and asset management** | $64.0 million | $61.0 million | +$3.0 million | | **Transaction card** | $29.6 million | $27.1 million | +$2.5 million | | **Total Fees and Commissions** | $197.3 million | $184.1 million | +$13.2 million | - Brokerage and trading revenue growth was driven by steady customer demand and higher mortgage origination volumes[8](index=8&type=chunk) - Other gains (losses), net, was a net gain of **$8.1 million**, a significant turnaround from a net loss of **$725 thousand** in the prior quarter, mainly due to gains on merchant banking and deferred compensation investments[10](index=10&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total operating expenses increased by **$7.0 million** to **$354.5 million**, primarily due to higher operational losses and increased technology-related professional fees - Personnel expense was consistent at **$214.7 million**, as a seasonal decrease in payroll taxes was offset by increased deferred compensation expense and the full quarter impact of annual merit increases[12](index=12&type=chunk) - Non-personnel expenses rose by **$6.4 million**, mainly due to a **$4.1 million** increase in 'Other expense' from higher operational losses and a combined **$4.1 million** increase in professional fees and data processing for technology projects[13](index=13&type=chunk) [Balance Sheet and Credit Analysis](index=5&type=section&id=Balance%20Sheet%20and%20Credit%20Analysis) The company's balance sheet strengthened with significant loan growth, stable deposits, improved capital ratios, and exceptional credit quality [Loans](index=5&type=section&id=Loans) Total loans increased by **$602 million** (2.5% QoQ) to **$24.3 billion**, driven by strong growth in Commercial Real Estate and Loans to Individuals Loan Portfolio Composition (June 30, 2025) | Loan Category | Balance | Change from Q1 2025 | % of Total Loans | | :--- | :--- | :--- | :--- | | **Total Commercial** | $14.4 billion | -$19 million | 59% | | *Energy* | *$2.7 billion* | *-$126 million* | *11%* | | **Commercial Real Estate** | $5.5 billion | +$358 million | 23% | | **Loans to Individuals** | $4.4 billion | +$263 million | 18% | | **Total Loans** | **$24.3 billion** | **+$602 million** | **100%** | - Growth in Commercial Real Estate was led by a **$141 million** increase in industrial loans and a **$137 million** increase in multifamily loans[20](index=20&type=chunk) - The decrease in the energy portfolio, which is primarily low-risk, first-lien, reserve-based lending, brought its share of total loans down to **11%**[16](index=16&type=chunk) [Deposits](index=6&type=section&id=Deposits) Period-end deposits remained stable at **$38.2 billion**, with a slight decrease of **$36 million**, reflecting a shift from non-interest-bearing to interest-bearing accounts Period End Deposit Composition (June 30, 2025) | Deposit Type | Balance | Change from Q1 2025 | | :--- | :--- | :--- | | Demand | $8.0 billion | -$290 million | | Interest-bearing transaction | $25.8 billion | +$182 million | | Time | $3.5 billion | +$83 million | | **Total Deposits** | **$38.2 billion** | **-$36 million** | - The loan to deposit ratio was **64%** at June 30, 2025, up from **62%** at March 31, 2025[22](index=22&type=chunk) - By segment, average deposits decreased in Commercial Banking (**-$344 million**) but increased in Consumer Banking (**+$112 million**) and Wealth Management (**+$81 million**)[24](index=24&type=chunk) [Capital](index=7&type=section&id=Capital) The company's capital position strengthened, with all regulatory capital ratios remaining well above minimum requirements, and active share repurchases undertaken Key Capital Ratios (June 30, 2025 vs. March 31, 2025) | Ratio | June 30, 2025 | March 31, 2025 | Minimum Requirement (incl. buffer) | | :--- | :--- | :--- | :--- | | **Common Equity Tier 1** | 13.59% | 13.31% | 7.00% | | **Tier 1 Capital** | 13.60% | 13.31% | 8.50% | | **Total Capital** | 14.48% | 14.54% | 10.50% | | **Tangible Common Equity** | 9.63% | 9.48% | N/A | - The company repurchased **663,298 shares** of common stock for approximately **$62.3 million** during the second quarter[27](index=27&type=chunk)[25](index=25&type=chunk) [Credit Quality](index=7&type=section&id=Credit%20Quality) Credit quality continued to improve in Q2 2025, with declining nonperforming assets and historically low net charge-offs, resulting in no provision for expected credit losses - Nonperforming assets decreased to **$81 million** (**0.33%** of loans) from **$85 million** (**0.36%** of loans) in the prior quarter[28](index=28&type=chunk) - Net charge-offs were minimal at **$561 thousand**, or **0.01%** of average loans on an annualized basis[30](index=30&type=chunk) - The combined allowance for loan losses and off-balance sheet credit risk was **$330 million**, representing **1.36%** of outstanding loans and **456%** of nonaccruing loans (excluding government-guaranteed loans)[31](index=31&type=chunk) [Securities & Derivatives](index=8&type=section&id=Securities%20%26%20Derivatives) The available-for-sale securities portfolio increased to **$13.3 billion** with narrowing unrealized losses, while the trading securities portfolio stood at **$5.6 billion** - The AFS portfolio, primarily consisting of U.S. government agency-backed mortgage securities, grew to **$13.3 billion**[32](index=32&type=chunk) - The trading securities portfolio, held to support customer sales, totaled **$5.6 billion** at quarter-end[33](index=33&type=chunk) - The net economic benefit from changes in the fair value of mortgage servicing rights and their related hedges was **$1.6 million** during the quarter[36](index=36&type=chunk) [Segment Performance](index=8&type=section&id=Segment%20Performance) Each segment demonstrated positive contributions, with Wealth Management showing significant growth, Consumer Banking improving profitability, and Commercial Banking maintaining stable performance [Commercial Banking](index=8&type=section&id=Commercial%20Banking) The Commercial Banking segment's net income before taxes increased by **$1.6 million** to **$141.6 million**, with stable revenue and a modest expense increase Commercial Banking Q2 2025 Highlights | Metric | Q2 2025 | Change from Q1 2025 | | :--- | :--- | :--- | | **Net Income Before Taxes** | $141.6 million | +$1.6 million | | **Average Loans** | $19.9 billion | -$71 million | | **Average Deposits** | $17.4 billion | -$344 million | [Consumer Banking](index=8&type=section&id=Consumer%20Banking) Consumer Banking contributed **$24.7 million** to net income before taxes, a **$2.6 million** increase, driven by decreased operating expenses and growth in loans and deposits Consumer Banking Q2 2025 Highlights | Metric | Q2 2025 | Change from Q1 2025 | | :--- | :--- | :--- | | **Net Income Before Taxes** | $24.7 million | +$2.6 million | | **Average Loans** | $2.3 billion | +$98 million | | **Average Deposits** | $8.3 billion | +$112 million | [Wealth Management](index=9&type=section&id=Wealth%20Management) The Wealth Management segment reported a strong quarter, with net income before taxes increasing by **$8.0 million** to **$40.7 million**, driven by higher revenue and asset growth Wealth Management Q2 2025 Highlights | Metric | Q2 2025 | Change from Q1 2025 | | :--- | :--- | :--- | | **Net Income Before Taxes** | $40.7 million | +$8.0 million | | **Average Loans** | $2.3 billion | +$88 million | | **Average Deposits** | $10.8 billion | +$81 million | | **Assets Under Management** | $117.9 billion | +$3.9 billion | [Financial Statements and Supplementary Data](index=10&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section provides comprehensive financial statements, quarterly trends, and reconciliations of non-GAAP measures for detailed performance analysis [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The unaudited balance sheet as of June 30, 2025, shows total assets of **$51.0 billion**, driven by an increase in net loans, with total equity growing to **$5.9 billion** Key Balance Sheet Items (June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Assets** | $50,998 million | $50,472 million | | Loans, net of allowance | $24,015 million | $23,412 million | | **Total Liabilities** | $45,105 million | $44,698 million | | Total Deposits | $38,246 million | $38,282 million | | **Total Equity** | $5,893 million | $5,774 million | [Income Statements](index=13&type=section&id=Income%20Statements) The unaudited income statement for Q2 2025 details a net income of **$140.0 million**, reflecting **$328.2 million** in net interest income and **$207.1 million** in other operating revenue Income Statement Summary (Three Months Ended June 30, 2025, in millions) | Item | Amount | | :--- | :--- | | Net Interest Income | $328.166 | | Provision for Credit Losses | $0 | | Total Other Operating Revenue | $207.098 | | Total Other Operating Expense | $354.503 | | Net Income Before Taxes | $180.761 | | **Net Income** | **$140.070** | [Quarterly Financial Trends](index=14&type=section&id=Quarterly%20Financial%20Trends) This section provides detailed trend data for the past five quarters, covering earnings, key ratios, capital levels, and credit quality indicators for comprehensive performance review - Quarterly trend data reveals a consistent increase in net interest income over the last five quarters, from **$296.0 million** in Q2 2024 to **$328.2 million** in Q2 2025[47](index=47&type=chunk) - Credit quality has shown significant improvement, with nonperforming assets decreasing from **$93.0 million** in Q2 2024 to **$81.1 million** in Q2 2025[62](index=62&type=chunk) - Capital ratios have steadily strengthened, with the Common Equity Tier 1 ratio rising from **12.10%** in Q2 2024 to **13.59%** in Q2 2025[48](index=48&type=chunk) [Reconciliation of Non-GAAP Measures](index=17&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures to GAAP, providing clearer insights into capital strength and core operational performance - The Tangible Common Equity Ratio is presented to show capital strength by eliminating intangible assets from shareholders' equity[53](index=53&type=chunk) - Pre-provision net revenue is calculated to assess the company's ability to generate earnings to cover credit losses through a credit cycle[55](index=55&type=chunk) - Net interest income and margin excluding trading activities are provided to help assess the performance of core lending and deposit activities without the volatility of trading[56](index=56&type=chunk)