BOK Financial Q3 Earnings Top Estimates as NII & Fee Income Rise Y/Y

Core Insights - BOK Financial Corporation (BOKF) reported Q3 2025 earnings of $2.22 per share, exceeding the Zacks Consensus Estimate of $2.10, marking a 1.8% increase from the previous year [1][10] - The company's performance was driven by higher net interest income and total fees and commissions, alongside an increase in loans and deposits, although rising operating expenses posed a challenge [1][10] Financial Performance - Net income attributable to shareholders reached $140.9 million, showing a slight year-over-year increase [2] - Quarterly net revenues amounted to $548.3 million, a 6.2% increase year-over-year, surpassing the Zacks Consensus Estimate of $533.7 million [3] - Net interest income was reported at $337.6 million, reflecting a 9.6% year-over-year growth, with the net interest margin expanding by 23 basis points to 2.91% [3] - Total fees and commissions increased to $204.4 million, nearly 1% higher year-over-year, driven by various revenue streams [4] Operating Expenses - Total other operating expenses rose to $369.8 million, an 8.4% increase year-over-year, primarily due to higher personnel costs [4] - The efficiency ratio increased to 66.66% from 65.11% in the prior year, indicating a decline in profitability [5] Loan and Deposit Growth - As of September 30, 2025, total loans reached $24.8 billion, up 2.3% from the prior quarter, mainly due to growth in commercial loans [6] - Total deposits slightly increased to $38.5 billion, driven by higher interest-bearing transaction accounts and time deposits [6] Credit Quality - Non-performing assets decreased to $74 million, or 0.30% of outstanding loans, down from $87 million or 0.36% in the prior year [7] - Provisions for credit losses remained stable at $2 million, while net charge-offs were $3.6 million compared to net recoveries of $54 thousand in the previous year [7] Capital Ratios and Profitability - As of September 30, 2025, the common equity Tier 1 capital ratio improved to 13.60% from 12.73% a year earlier, with tier 1 and total capital ratios also showing improvement [11] - Return on average equity decreased to 9.38% from 10.22% year-over-year, while return on average assets slightly declined to 1.08% from 1.09% [11] Share Repurchase - During the reported quarter, BOK Financial repurchased 365,547 shares at an average price of $111 per share [12] Overall Assessment - BOK Financial's strong net interest income and solid loan balances support its overall performance, although rising operating expenses are a concern [13]