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].

Core Insights - Bok Financial reported GAAP earnings per share of $2.19, exceeding the expected $1.99, and GAAP revenue of $525.5 million, surpassing the $520.06 million estimate, indicating strong performance in Q2 2025 [1][5] - The company experienced growth in net interest income, which rose to $328.2 million, a 10.9% increase year-over-year, while total operating expenses increased by 5.3% to $354.5 million [2][8] - Bok Financial's strategic focus includes geographic expansion, particularly in Texas, and diversification of revenue streams, balancing traditional banking with fee-based services [4][3] Financial Performance - GAAP EPS for Q2 2025 was $2.19, down 13.8% from $2.54 in Q2 2024, while GAAP revenue decreased by 5.4% from $555.7 million in the prior year [2] - Net interest income increased by 10.9% year-over-year, supported by higher average earning assets and a modest increase in loans, which totaled $24.3 billion, up $602 million from the previous quarter [6] - Total operating expenses rose to $354.5 million, with personnel costs remaining flat but other expenses increasing due to technology initiatives and professional services [8] Asset Quality and Risk Management - Nonperforming assets were reported at $81 million, representing 0.33% of total loans, with net charge-offs at $0.6 million, indicating strong asset quality [7] - The allowance for credit losses was $330 million, covering nonaccruing loans by more than fourfold, with no provision for loan losses booked due to improved credit conditions [7] Business Segments and Growth Initiatives - Commercial Banking contributed $141.6 million to net income before taxes, while wealth management services reported significant profitability and assets under management totaling $117.9 billion [9] - The company is developing a mortgage finance vertical expected to expand loan product offerings, with a launch planned for September to October 2025 [10] Capital Management - Bok Financial repurchased 663,298 shares at an average price of $93.99 per share and paid out $36.3 million in dividends, with a payout ratio of 25.9% [10] - Capital ratios remained strong, with tangible common equity at 9.63% and the Common Equity Tier 1 ratio at 13.59% [8]

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]

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]