BOK Financial's Q2 Earnings Beat on NII & Loan Growth, Stock Gains

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]