BOK Financial(US:BOKF)2025-10-29 15:18Financial Performance - BOK Financial reported net income of $140.9 million, or $2.22 per diluted share, for Q3 2025, compared to $140.0 million, or $2.19 per diluted share, in Q2 2025[10]. - The company reported a net change in fair value of $2.92 billion for the three months ended September 30, 2025[31]. - Net income before taxes for the segments was $190.9 million in Q3 2025, a decrease of $15.9 million or 8% from Q2 2025[50]. - Net income before taxes from Consumer Banking decreased by $10.3 million, or 41%, to $14.5 million for the third quarter of 2025[59]. - Net income attributable to BOK Financial Corporation shareholders for Q3 2025 was $140,894,000, compared to $139,999,000 in Q3 2024, reflecting a slight increase of 0.6%[192]. Revenue and Income Sources - Net interest income totaled $337.6 million, an increase of $9.5 million over the prior quarter, with a net interest margin expanding 11 basis points to 2.91%[10]. - Fees and commissions revenue reached $204.4 million, up $7.1 million from the previous quarter, driven by increased municipal underwriting activity[10]. - Other operating revenue increased to $210.7 million for the third quarter of 2025, up $3.6 million from the second quarter of 2025, driven by growth in investment banking revenue[21]. - Total tax-equivalent interest revenue for the third quarter of 2025 was $9.5 million, a decrease of $3.9 million compared to the previous quarter[20]. - Total other operating revenue for the nine months ended September 30, 2025, was $603,848,000, down from $629,597,000 in the same period of 2024, a decline of 4.1%[191]. Loan and Deposit Growth - Period end outstanding loan balances grew by $573 million to $24.9 billion, with average loan balances increasing by $650 million to $24.8 billion[10]. - Period end deposits increased by $254 million to $38.5 billion, with a loan to deposit ratio of 65%[10]. - Average outstanding loan balances attributed to Commercial Banking increased by $386 million, or 2%, to $20.3 billion over the second quarter of 2025[56]. - Average deposits for the third quarter of 2025 reached $38.481 billion, an increase of $345 million or 0.9% compared to the second quarter of 2025[130]. - Total deposits for BOK Financial reached $38.5 billion as of September 30, 2025, an increase from $38.2 billion in the previous quarter[138]. Expenses and Efficiency - Other operating expense for Q3 2025 totaled $369.8 million, an increase of $15.3 million from Q2 2025, with an efficiency ratio of 66.66%[39]. - Personnel expense was $226.3 million, up $11.6 million compared to Q2 2025, driven by a $5.4 million increase in cash-based incentive compensation due to stronger underwriting and loan origination activity[40]. - Non-personnel expense increased to $143.4 million, reflecting a $4.0 million rise in mortgage banking costs[41]. - The efficiency ratio for Q3 2025 was 66.66%, indicating the company's ability to manage its expenses relative to its income[155]. Capital and Equity - The tangible common equity ratio improved to 10.06% at September 30, 2025, up from 9.63% at June 30, 2025[10]. - As of September 30, 2025, the company's equity capital was $6.0 billion, reflecting a $132 million increase from June 30, 2025[145]. - The common equity Tier 1 capital ratio stood at 13.60% as of September 30, 2025, significantly above the minimum requirement of 4.50%[150]. - The total capital surplus as of September 30, 2025, was $1,447,084, an increase from $1,441,326 as of June 30, 2025, representing a growth of approximately 0.4%[195]. - Net income less cash dividends paid contributed to a $105 million increase in equity during Q3 2025[145]. Credit Quality and Losses - The provision for expected credit losses was $2.0 million in Q3 2025, reflecting loan growth, while net charge-offs were $3.6 million, or 0.06% of average loans[10]. - The total provision for credit losses for the quarter was $2,000 thousand, with an ending balance for the allowance for loan losses at $277,692 thousand, up from $277,049 thousand at June 30, 2025[110]. - Net charge-offs in Q3 2025 were $3.6 million, or 0.06% of average loans on an annualized basis, primarily due to a single commercial services loan[118]. - Total nonperforming assets decreased to $74.145 million at September 30, 2025, from $81.056 million at June 30, 2025[124]. - The allowance for loan losses to nonaccruing loans was 426.92% at September 30, 2025[124]. Market and Economic Outlook - The economic outlook includes a GDP growth forecast of 1.6% over the next 12 months, with a civilian unemployment rate of 4.5% in Q4 2025[117]. - The company anticipates three rate cuts over the next four quarters, bringing the federal funds target range to 3.25%[117]. - WTI oil prices are projected to average $57.08 per barrel over the next 12 months[117]. - The probability weighting for economic scenarios remained unchanged, with a 50% base case, 35% downside, and 15% upside[114]. Shareholder Returns - A regular cash dividend of $36.1 million, or $0.57 per common share, was paid during Q3 2025, with an increase to $0.63 per share approved for the next quarter[11]. - The company repurchased 365,547 shares of common stock at an average price of $111.00 per share in Q3 2025[10]. - Dividends declared per share increased to $0.57 in Q3 2025 from $0.55 in Q3 2024, representing a growth of 3.6%[191]. - The company repurchased 366 shares of common stock for a total amount of $(40,981) during the quarter[195].