BOK Financial(US:BOKF)2026-01-16 21:03Financial Performance - BOK Financial Corporation reported annual net income of $578 million, or $9.17 per diluted share, for 2025, compared to $523.6 million, or $8.14 per diluted share, in 2024[2]. - Fourth quarter net income was $177.3 million, or $2.89 per diluted share, an increase from $140.9 million, or $2.22 per diluted share, in the prior quarter[1]. - Net income attributable to BOK Financial Corporation shareholders for Q4 2025 was $177,301 thousand, a 30.2% increase from $136,154 thousand in Q4 2024[50]. - Net income per share for Q4 2025 was $2.89, up from $2.12 in Q4 2024, representing a growth of 36.4%[50]. - Adjusted net income for Q4 2025 was $152,134,000, resulting in adjusted earnings per share of $2.48, compared to $2.89 for net income attributable to shareholders[55]. Revenue and Income Sources - Net interest income for 2025 totaled $1.3 billion, an increase of $116.6 million from the previous year, with a net interest margin of 2.87% compared to 2.65%[2]. - Fees and commissions revenue for the fourth quarter was $214.9 million, up $10.4 million, led by growth in trading revenue and fiduciary and asset management revenue[9]. - Other operating revenue increased by 15.9% to $244.3 million in the fourth quarter, driven by a $23.5 million pre-tax gain on the sale of a merchant banking investment[12]. - Total fees and commissions for the quarter reached $214,864 thousand, up from $206,938 thousand in the previous year, indicating a growth of 3.4%[51]. Loan and Deposit Growth - Average outstanding loan balances increased by $416 million to $25.2 billion, primarily driven by growth in the commercial loan portfolio[5]. - Period end loans grew by $786 million to $25.7 billion, with nonperforming assets stable at $75 million, or 0.29% of outstanding loans[1]. - Outstanding loans increased by $786 million to $25.7 billion, primarily driven by growth in commercial loans, with unfunded loan commitments growing by $590 million[16][17]. - Period-end deposits totaled $39.4 billion, an increase of $935 million, with interest-bearing transaction accounts up by $867 million[24]. - Total loans increased to $25,651,462,000 in Q4 2025, up from $24,865,194,000 in Q3 2025, representing a growth of 3.2%[61]. Operating Expenses and Efficiency - Operating expenses decreased by $8.7 million to $361.1 million in the fourth quarter, while personnel expenses decreased by $3.6 million[1]. - Total operating expenses for Q4 2025 were $361.1 million, a decrease of $8.7 million or 2.4% from the previous quarter[13]. - The efficiency ratio improved to 60.71% in Q4 2025 from 66.66% in Q3 2025, indicating better operational efficiency[54]. - The efficiency ratio for the year ended December 31, 2025, was 65.13%, indicating the company's operational efficiency[55]. Capital and Asset Management - The company's common equity Tier 1 capital ratio was 12.89% at December 31, 2025, down from 13.60% at September 30, 2025[26]. - Total assets increased to $52.2 billion as of December 31, 2025, up from $50.2 billion at September 30, 2025[47]. - The fair value of the available-for-sale securities portfolio increased by $126 million to $13.6 billion at December 31, 2025, with a net unrealized loss of $133 million[35]. - The tangible common equity ratio decreased to 9.46% in Q4 2025 from 10.06% in Q3 2025[54]. Credit Quality and Risk Management - Nonperforming assets totaled $75 million, or 0.29% of outstanding loans, showing a slight improvement from 0.30% in the previous quarter[29]. - Net charge-offs for the fourth quarter of 2025 were $1.4 million, or 0.02% of average loans, with trailing twelve months net charge-offs at $6.7 million, or 0.03% of average loans[31]. - The combined allowance for loan losses and off-balance sheet credit risk was $327 million, or 1.28% of outstanding loans, as of December 31, 2025[33]. - The allowance for loan losses to period end loans was 1.08% as of December 31, 2025, down from 1.12% in the previous quarter, suggesting a slight improvement in loan quality[67]. Shareholder Returns and Stock Activity - The company repurchased 2,617,414 shares of common stock at an average price of $107.99 per share during the fourth quarter[1]. - Cash dividends paid in the quarter amounted to $38,042 thousand, up from $36,421 thousand in the previous year, reflecting a growth of 4.5%[52]. - Shares repurchased during the quarter totaled 2,617,414, with an amount of $282,645 thousand spent, reflecting a significant investment in share buybacks[52]. Segment Performance - Commercial Banking segment contributed $164.0 million to net income before taxes, an increase of $24.2 million from the previous quarter, with average loans rising by $249 million, or 1%[40]. - Consumer Banking segment net income before taxes was $15.1 million, with average loans increasing by $83 million, or 3%[41]. - Wealth Management segment contributed $42.7 million to net income before taxes, an increase of $6.1 million, with assets under management rising by $3.9 billion, or 3%[42].