BOK Financial(BOKF) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $119.8 million, or $1.86 per diluted share, down from $136.2 million, or $2.12 per diluted share in the prior quarter[1]. - Net income attributable to BOK Financial Corporation shareholders rose to $119,777 thousand in Q1 2025, up 43% from $83,703 thousand in Q1 2024[45]. - Net income attributable to BOK Financial Corporation shareholders was $119,777,000, down from $136,154,000 in the previous quarter[49]. - Basic and diluted net income per share increased to $1.86 in Q1 2025, up from $1.29 in Q1 2024, representing a growth of 44.3%[45]. - Commercial Banking net income before taxes was $140.0 million, a decrease of $20.4 million from Q4 2024, with net interest income and fee revenue down by $22.9 million[36]. - Consumer Banking contributed $22.1 million to net income before taxes, a decrease of $1.5 million from the prior quarter, with average loans increasing by $59 million, or 3%[37]. - Wealth Management's net income before taxes was $32.7 million, down $16.2 million from Q4 2024, with average deposits increasing by $719 million, or 7%[38]. Revenue and Income Sources - Net interest income increased by $3.2 million to $316.3 million, with a net interest margin expanding to 2.78% from 2.75% in the previous quarter[1][3]. - Fees and commissions revenue decreased by $22.8 million to $184.1 million, primarily due to a $24.4 million drop in brokerage and trading revenue[1][7]. - Mortgage banking revenue increased by $1.7 million, supported by higher production as client demand begins to grow[9]. - Total other operating revenue for Q1 2025 was $186,041 thousand, an increase from $161,701 thousand in Q1 2024, marking a growth of 15.0%[45]. - Total other operating revenue decreased to $186,041 in Q1 2025 from $210,044 in Q4 2024, a decline of 11.43%[46]. Loan and Deposit Trends - Average outstanding loan balances rose by $44 million to $24.1 billion, driven by growth in commercial real estate loans and loans to individuals[1][4]. - Outstanding loans totaled $23.7 billion at March 31, 2025, a decrease of $424 million or 1.8% compared to December 31, 2024, primarily due to a decline in commercial loans[14]. - Total deposits increased to $38.3 billion at March 31, 2025, with interest-bearing transaction accounts increasing by $207 million[23]. - Period end deposits grew by $90 million to $38.3 billion, while average deposits increased by $540 million to $38.4 billion[1]. - The loan to deposit ratio was 62% at March 31, 2025, compared to 63% at December 31, 2024, indicating strong liquidity[22]. Asset Quality and Credit Risk - Nonperforming assets increased to $85 million, or 0.36% of outstanding loans, compared to $49 million, or 0.20%, at the end of the previous quarter[1]. - The allowance for loan losses to period-end loans was 1.18% in Q1 2025, slightly up from 1.17% in Q1 2024, showing a stable credit quality[62]. - The provision for credit losses was zero in Q1 2025, compared to $8,000 thousand in Q1 2024[45]. - Total nonaccruing loans increased to $83.520 million in Q1 2025, compared to $46.725 million in Q4 2024, marking an increase of 78.6%[61]. - The total provision for credit losses was reported as $0 in Q1 2025, down from $2 million in Q3 2024, suggesting improved credit conditions[61]. Capital and Equity - The tangible common equity ratio improved to 9.48% from 9.17% at the end of the previous quarter[1]. - The company's common equity Tier 1 capital ratio was 13.31% at March 31, 2025, up from 13.03% at December 31, 2024[25]. - Period end shareholders' equity increased to $5,771,813 in Q1 2025 from $5,548,353 in Q4 2024, an increase of 4.02%[47]. - Book value per share rose to $89.82 in Q1 2025, up from $86.53 in Q4 2024, an increase of 2.64%[47]. Market and Economic Conditions - The fair value of the available-for-sale securities portfolio increased by $251 million to $13.1 billion at March 31, 2025, with a net unrealized loss of $364 million[31]. - The trading securities portfolio totaled $5.9 billion at March 31, 2025, an increase from $4.9 billion at December 31, 2024[32]. - The total cost of interest-bearing liabilities decreased to 3.42% in Q1 2025 from 4.08% in Q1 2024, reflecting a year-over-year decline of 0.66%[60]. - The tax-equivalent net interest margin for BOK Financial Corporation increased to 2.78% in Q1 2025, up from 2.61% in Q1 2024, reflecting a year-over-year improvement of 0.17%[60].