BOK Financial Q4 Earnings Beat Estimates on Higher NII & Fee Income

Core Insights - BOK Financial Corporation (BOKF) reported a fourth-quarter 2025 adjusted net income per share of $2.48, exceeding the Zacks Consensus Estimate of $2.13, marking a 16.9% increase from the prior-year quarter [1][7] - The company's performance was driven by higher net interest income (NII) and total fees and commissions, alongside growth in loans and deposits, although rising operating expenses were a concern [1][11] Financial Performance - Net income attributable to shareholders for the quarter was $177.3 million, reflecting a 30.2% year-over-year increase [2] - Quarterly net revenues reached $589.6 million, a 12.7% increase year-over-year, surpassing the Zacks Consensus Estimate of $543 million [3] - Full-year revenues totaled $2.17 billion, up 7% year-over-year [3] Income and Expenses - Net interest income was reported at $345.3 million, a 10.3% increase year-over-year, with the net interest margin expanding by 23 basis points to 2.98% [3] - Total fees and commissions amounted to $214.9 million, up 3.8% year-over-year, driven by growth in nearly all components [4] - Total operating expenses were $361.1 million, also up 3.8% year-over-year, primarily due to higher personnel costs [4] Loan and Deposit Growth - As of December 31, 2025, total loans increased to $25.6 billion, a 3.2% rise from the prior quarter, mainly due to growth in commercial loans and loans to individuals [5][7] - Total deposits rose 2.4% sequentially to $39.4 billion, supported by higher interest-bearing transaction accounts, demand deposits, and savings deposits [5] Credit Quality - Non-performing assets stood at $74.5 million, or 0.29% of outstanding loans, compared to $48.9 million, or 0.20%, in the prior-year quarter [6] - The company recorded net charge-offs of $1.4 million, up from $528 thousand in the year-ago quarter [8] Capital and Profitability Ratios - As of December 31, 2025, the common equity Tier 1 capital ratio was 12.89%, down from 13.03% a year earlier [9] - Return on average equity improved to 11.80%, up from 9.71% in the prior year, while return on average assets increased to 1.36% from 1.07% [9] Share Repurchase Activity - During the reported quarter, BOK Financial repurchased 2,617,414 shares at an average price of $107.99 per share [10]