Core Viewpoint - BOK Financial's recent earnings report shows mixed results, with adjusted earnings per share beating estimates but a decline in net income and revenues year over year [3][4][5]. Financial Performance - The second-quarter 2025 adjusted earnings per share was $2.19, surpassing the Zacks Consensus Estimate of $1.98, but down 13.8% from the prior year [3]. - Net income attributable to shareholders was $140 million, a decline of 14.5% year over year [4]. - Quarterly net revenues were $535.2 million, down 3.6% year over year, but above the Zacks Consensus Estimate of $517.9 million [5]. Revenue and Expenses - Net interest income increased to $328.2 million, up 10.8% year over year, with the net interest margin expanding by 24 basis points to 2.80% [5]. - Total fees and commissions were $197.3 million, down 1.3% year over year, primarily due to lower brokerage and trading revenues [5]. - Total operating expenses rose to $354.5 million, an increase of 5.3% year over year, mainly due to higher personnel costs [6]. Loan and Deposit Trends - Total loans reached $24.3 billion, up 2.5% from the prior quarter, driven by growth in commercial real estate loans and loans to individuals [7]. - Total deposits slightly declined to $38.2 billion, attributed to reduced demand and savings [7]. Credit Quality - Non-performing assets decreased to $81 million, or 0.33% of outstanding loans, down from $93 million, or 0.38%, in the prior year [8]. - The company recorded no provisions for credit losses, compared to $8 million in the prior year [8]. Capital Ratios and Profitability - The common equity Tier 1 capital ratio improved to 13.59%, up from 12.10% a year earlier [9]. - Return on average equity was 9.70%, down from 12.79% in the previous year [10]. 2025 Outlook - The company anticipates loan growth in the mid to upper single-digit range and expects net interest income to be between $1.33 billion and $1.38 billion, up from $1.2 billion in 2024 [11]. - Total revenues are projected to grow in the mid to upper-single-digit range from $2.05 billion in 2024 [12]. - Provisions for credit losses are expected to remain below $18 million, compared to earlier guidance of $20–$40 million [12]. Market Sentiment - Investors have observed a flat trend in fresh estimates over the past month [13]. - BOK Financial has an average Growth Score of C and a value score of B, resulting in an aggregate VGM Score of B [14]. - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [15].
Why Is BOK Financial (BOKF) Down 0.6% Since Last Earnings Report?