BOKF Net Interest Income Jumps 10.9%

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]