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]

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Financial Performance - Net income for the third quarter of 2025 was $140.9 million, or $2.22 per diluted share, compared to $140.0 million, or $2.19 per diluted share in the prior quarter[1]. - Net interest income increased by $9.5 million to $337.6 million, with the net interest margin expanding to 2.91% from 2.80%[1][3]. - Fees and commissions revenue totaled $204.4 million, an increase of $7.1 million, driven by growth in investment banking revenue[1][7]. - Operating expenses increased by $15.3 million to $369.8 million, primarily due to higher personnel expenses[1][10]. - The company's common equity Tier 1 capital ratio was 13.60% at September 30, 2025, slightly up from 13.59% at June 30, 2025[24]. - Net income before taxes for the three months ended September 30, 2025, was $176,585, compared to $173,286 for the same period in 2024[46]. - Basic net income per share for the three months ended September 30, 2025, was $2.22, up from $2.18 in the same period last year[46]. - Total other operating revenue for the three months ended September 30, 2025, was $210,709, slightly up from $208,192 in the same period last year[46]. Loan and Deposit Growth - Loans grew by $573 million to $24.9 billion, with average outstanding loan balances increasing by $650 million[1][4]. - Period end deposits rose by $254 million to $38.5 billion, while average deposits increased by $345 million[1]. - Total deposits reached $38.5 billion, a $254 million increase, with time deposits up by $213 million and interest-bearing transaction accounts up by $139 million[22]. - The loan to deposit ratio was 65% at September 30, 2025, compared to 64% at June 30, 2025, indicating strong liquidity to meet future loan demand[21]. - Total loans for BOK Financial Corporation reached $24,865,194 thousand as of September 30, 2025, an increase of 2.36% from $24,292,211 thousand in June 30, 2025[56]. - Total deposits for BOK Financial Corporation reached $38,500,018 thousand as of September 30, 2025, an increase from $38,246,109 thousand in the previous quarter[59]. Asset Quality - Nonperforming assets declined to $74 million, or 0.30% of outstanding loans and repossessed assets, down from $81 million, or 0.33%[1]. - Nonperforming assets decreased to $74,145,000 from $81,056,000 in the previous quarter, representing a decline of 11.8%[61]. - Nonaccruing loans totaled $72,394,000, down from $79,327,000 in the prior quarter, a decrease of 8.4%[61]. - The allowance for loan losses to period end loans was 1.12%, slightly down from 1.14% in the previous quarter[62]. Capital and Equity - Total shareholders' equity increased to $6.0 billion from $5.9 billion in the previous quarter[44]. - Period end shareholders' equity increased to $6,022,535,000 in Q3 2025 from $5,890,888,000 in Q2 2025[48]. - The tangible common equity ratio increased to 10.06% in Q3 2025, up from 9.22% in Q3 2024, reflecting enhanced capital strength[50]. Regional Performance - In Texas, total loans amounted to $9,945,743 thousand, reflecting a slight increase from $9,887,185 thousand in June 30, 2025[57]. - Oklahoma's total loans increased to $7,193,630 thousand, up 7.48% from $6,693,091 thousand in the previous quarter[57]. - Total Texas deposits increased to $9,418,629 thousand, up from $9,079,417 thousand in the previous quarter, reflecting strong growth in this region[58]. Efficiency and Profitability - The efficiency ratio for Q3 2025 was 66.66%, compared to 65.42% in Q2 2025, indicating a slight decline in operational efficiency[48]. - Return on average assets for Q3 2025 was 1.08%, slightly up from 1.07% in Q2 2025[48]. - Return on average tangible common equity was 11.46% in Q3 2025, compared to 12.80% in Q3 2024, showing a decrease in profitability[50]. Mortgage and Wealth Management - Mortgage production revenue for Q3 2025 was $2,370,000, an increase from $1,563,000 in Q3 2024, representing a year-over-year growth of 51.7%[49]. - Assets under management or administration in Wealth Management reached $122.7 billion, an increase of $4.8 billion, or 4%[39]. - Average loans in Wealth Management increased to $2,353,961,000, a rise of 3.5% from the previous quarter[63].

Core Insights - BOK Financial Corporation (NASDAQ:BOKF) is a regional banking and financial services company primarily operating in the Southwest and Midwest regions of the United States, offering services such as commercial banking, wealth management, and mortgage banking [1] Financial Performance - The consensus price target for BOK Financial has increased from $118 to $129.5 over the past year, indicating growing analyst confidence in the company's financial health and future prospects [2][6] - BOKF reported GAAP earnings per share of $2.19, surpassing the anticipated $1.99, and achieved GAAP revenue of $525.5 million, exceeding the estimated $520.06 million [2][6] Market Expansion - BOK Financial's operations across multiple states, including Oklahoma, Texas, and New Mexico, have bolstered its growth prospects, contributing to positive analyst sentiment [3] Strategic Initiatives - Strategic initiatives such as mergers, acquisitions, or partnerships can significantly impact analysts' views on BOK Financial, enhancing the company's competitive position and leading to revised price targets [4] - Recent earnings conference calls provided insights into BOKF's strategic direction and future outlook, further influencing analyst sentiment [4] Economic Conditions - Broader economic conditions, including interest rate changes and economic growth in the regions where BOK Financial operates, can affect the company's performance and analysts' price targets [5] - Despite a recent 0.6% decline in stock price since the last earnings report, analysts remain optimistic about BOKF's future prospects, as evidenced by the consistent price target set by Wells Fargo [5]

Core Viewpoint - The market anticipates a year-over-year decline in BOK Financial's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - BOK Financial is expected to report quarterly earnings of $2.10 per share, reflecting a year-over-year decrease of 3.7% [3]. - Revenues are projected to be $533.7 million, which is an increase of 3.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 9.58% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for BOK Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.76% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - BOK Financial currently holds a Zacks Rank of 2, suggesting a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, BOK Financial exceeded the expected earnings of $1.98 per share by delivering $2.19, resulting in a surprise of +10.61% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Context - In the broader context, First Horizon National is expected to post earnings of $0.45 per share for the same quarter, indicating a year-over-year increase of 7.1% [18]. - First Horizon's revenue is anticipated to be $845.74 million, up 2.1% from the previous year [18].

Core Viewpoint - Jefferies upgraded BOK Financial (NASDAQ:BOKF) to Buy from Hold due to its improving deposit base, above-average loan growth, and fee momentum [2] Group 1: Financial Performance - The upgrade reflects a stable-to-improving non-interest bearing deposit mix [2] - BOK Financial is experiencing solid loan growth, with almost half of its loans tied to strong markets [2]