Q4 Earnings Conference Call January 20, 2026 Pri m ar y & se co nd ar y br an d co lor s Data viz colors Data viz monochromatic Legal Disclaimers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, and the economy generally. Words such as "anticipates," "believes," "e ...

Group 1 - The article discusses the Q4 earnings season for regional banks, specifically focusing on BOK Financial Corporation (BOKF) [1] - The analysis emphasizes the importance of regional bank performance as an indicator of broader economic trends [1] - The article highlights the expertise of Quad 7 Capital, a team of analysts known for their investment strategies and market insights [1] Group 2 - Quad 7 Capital has a track record of successful investment calls, including a notable recommendation to sell everything and go short in February 2020 [1] - The team focuses on short- and medium-term investments, income generation, and momentum trades, providing in-depth research and clear entry and exit targets [1] - The benefits of BAD BEAT Investing include educational resources for investors, access to trading tools, and weekly trade ideas [1]

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]

Core Viewpoint - BOK Financial Corporation reported its operating results for the fourth quarter and full year of 2025, indicating a significant financial performance review scheduled for January 20, 2026 [1] Financial Results - The fourth quarter earnings release for 2025 is available for review, providing detailed insights into the company's financial performance [1] - A conference call is set to take place on January 20, 2026, at noon central time to discuss the financial results [1]

Financial Performance - BOK Financial Corporation reported annual net income of $578 million, or $9.17 per diluted share, for 2025, compared to $523.6 million, or $8.14 per diluted share, in 2024[2]. - Fourth quarter net income was $177.3 million, or $2.89 per diluted share, an increase from $140.9 million, or $2.22 per diluted share, in the prior quarter[1]. - Net income attributable to BOK Financial Corporation shareholders for Q4 2025 was $177,301 thousand, a 30.2% increase from $136,154 thousand in Q4 2024[50]. - Net income per share for Q4 2025 was $2.89, up from $2.12 in Q4 2024, representing a growth of 36.4%[50]. - Adjusted net income for Q4 2025 was $152,134,000, resulting in adjusted earnings per share of $2.48, compared to $2.89 for net income attributable to shareholders[55]. Revenue and Income Sources - Net interest income for 2025 totaled $1.3 billion, an increase of $116.6 million from the previous year, with a net interest margin of 2.87% compared to 2.65%[2]. - Fees and commissions revenue for the fourth quarter was $214.9 million, up $10.4 million, led by growth in trading revenue and fiduciary and asset management revenue[9]. - Other operating revenue increased by 15.9% to $244.3 million in the fourth quarter, driven by a $23.5 million pre-tax gain on the sale of a merchant banking investment[12]. - Total fees and commissions for the quarter reached $214,864 thousand, up from $206,938 thousand in the previous year, indicating a growth of 3.4%[51]. Loan and Deposit Growth - Average outstanding loan balances increased by $416 million to $25.2 billion, primarily driven by growth in the commercial loan portfolio[5]. - Period end loans grew by $786 million to $25.7 billion, with nonperforming assets stable at $75 million, or 0.29% of outstanding loans[1]. - Outstanding loans increased by $786 million to $25.7 billion, primarily driven by growth in commercial loans, with unfunded loan commitments growing by $590 million[16][17]. - Period-end deposits totaled $39.4 billion, an increase of $935 million, with interest-bearing transaction accounts up by $867 million[24]. - Total loans increased to $25,651,462,000 in Q4 2025, up from $24,865,194,000 in Q3 2025, representing a growth of 3.2%[61]. Operating Expenses and Efficiency - Operating expenses decreased by $8.7 million to $361.1 million in the fourth quarter, while personnel expenses decreased by $3.6 million[1]. - Total operating expenses for Q4 2025 were $361.1 million, a decrease of $8.7 million or 2.4% from the previous quarter[13]. - The efficiency ratio improved to 60.71% in Q4 2025 from 66.66% in Q3 2025, indicating better operational efficiency[54]. - The efficiency ratio for the year ended December 31, 2025, was 65.13%, indicating the company's operational efficiency[55]. Capital and Asset Management - The company's common equity Tier 1 capital ratio was 12.89% at December 31, 2025, down from 13.60% at September 30, 2025[26]. - Total assets increased to $52.2 billion as of December 31, 2025, up from $50.2 billion at September 30, 2025[47]. - The fair value of the available-for-sale securities portfolio increased by $126 million to $13.6 billion at December 31, 2025, with a net unrealized loss of $133 million[35]. - The tangible common equity ratio decreased to 9.46% in Q4 2025 from 10.06% in Q3 2025[54]. Credit Quality and Risk Management - Nonperforming assets totaled $75 million, or 0.29% of outstanding loans, showing a slight improvement from 0.30% in the previous quarter[29]. - Net charge-offs for the fourth quarter of 2025 were $1.4 million, or 0.02% of average loans, with trailing twelve months net charge-offs at $6.7 million, or 0.03% of average loans[31]. - The combined allowance for loan losses and off-balance sheet credit risk was $327 million, or 1.28% of outstanding loans, as of December 31, 2025[33]. - The allowance for loan losses to period end loans was 1.08% as of December 31, 2025, down from 1.12% in the previous quarter, suggesting a slight improvement in loan quality[67]. Shareholder Returns and Stock Activity - The company repurchased 2,617,414 shares of common stock at an average price of $107.99 per share during the fourth quarter[1]. - Cash dividends paid in the quarter amounted to $38,042 thousand, up from $36,421 thousand in the previous year, reflecting a growth of 4.5%[52]. - Shares repurchased during the quarter totaled 2,617,414, with an amount of $282,645 thousand spent, reflecting a significant investment in share buybacks[52]. Segment Performance - Commercial Banking segment contributed $164.0 million to net income before taxes, an increase of $24.2 million from the previous quarter, with average loans rising by $249 million, or 1%[40]. - Consumer Banking segment net income before taxes was $15.1 million, with average loans increasing by $83 million, or 3%[41]. - Wealth Management segment contributed $42.7 million to net income before taxes, an increase of $6.1 million, with assets under management rising by $3.9 billion, or 3%[42].

Core Viewpoint - BOK Financial Corporation is expected to report an increase in fourth-quarter earnings and revenue compared to the previous year [1] Earnings Expectations - The company is projected to report fourth-quarter earnings of $2.16 per share, up from $2.12 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $549.37 million, an increase from $525.56 million reported last year [1] Recent Stock Performance - Shares of BOK Financial gained 2.1% to close at $127.69 [2] Analyst Ratings and Price Targets - Wells Fargo analyst Timur Braziler maintained an Equal-Weight rating and raised the price target from $105 to $115 [3] - Barclays analyst Jared Shaw maintained an Equal-Weight rating and increased the price target from $120 to $125 [3] - Hovde Group analyst Brett Rabatin downgraded the stock from Outperform to Market Perform [3] - DA Davidson analyst Peter Winter maintained a Buy rating and raised the price target from $120 to $122 [3] - Keefe, Bruyette & Woods analyst Wood Lay maintained a Market Perform rating and cut the price target from $118 to $116 [3]

Core Viewpoint - BOK Financial Corporation (NASDAQ:BOKF) is a financial holding company with a stable outlook, offering various financial products and services across multiple states, and is expected to report strong earnings growth soon [1][3][6] Group 1: Company Overview - BOK Financial operates through three main segments: Commercial Banking, Consumer Banking, and Wealth Management [1] - The company competes with mid-cap finance companies like First Financial Bankshares (NASDAQ:FFIN) [1] Group 2: Price Target Analysis - The consensus price target for BOK Financial's stock has shown slight fluctuations, remaining around $120 over the past year, with a recent increase to $121.4 [2][6] - Wells Fargo has set a lower price target of $105, indicating a more cautious outlook compared to other analysts [2] Group 3: Earnings Expectations - BOK Financial is anticipated to report earnings next week, with Wall Street expecting growth and a strong potential for an earnings beat based on past performance [3][6] - The company has consistently delivered impressive earnings surprises, suggesting a favorable outlook for the upcoming quarterly report [3] Group 4: Economic and Strategic Factors - Economic conditions such as interest rates, inflation, and regional economic growth are vital for BOK Financial's performance [4] - Strategic initiatives, including mergers, acquisitions, and market expansions, can significantly influence analysts' price targets [5][6]

Core Viewpoint - BOK Financial (BOKF) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a strong earnings history and positive analyst sentiment [1][5]. Earnings Performance - For the most recent quarter, BOK Financial reported earnings of $2.22 per share, exceeding the expected $2.1 per share, resulting in a surprise of 5.71% [2]. - In the previous quarter, the company reported $2.19 per share against an expectation of $1.98 per share, achieving a surprise of 10.61% [2]. Analyst Estimates - Recent estimates for BOK Financial have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for BOK Financial is +3.53%, reflecting growing bullish sentiment among analysts regarding its near-term earnings potential [8]. Zacks Rank and Predictive Power - BOK Financial holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, suggests a high probability of another earnings beat [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [6].

Core Viewpoint - BOK Financial Corporation will host a conference call to discuss its fourth quarter and full-year 2025 financial results on January 20, 2026 [1] Company Developments - The conference call may include discussions on company developments and forward-looking statements [1] Financial Matters - The call will cover other material information regarding business and financial matters [1]

Financial Performance - BOK Financial reported net income of $140.9 million, or $2.22 per diluted share, for Q3 2025, compared to $140.0 million, or $2.19 per diluted share, in Q2 2025[10]. - The company reported a net change in fair value of $2.92 billion for the three months ended September 30, 2025[31]. - Net income before taxes for the segments was $190.9 million in Q3 2025, a decrease of $15.9 million or 8% from Q2 2025[50]. - Net income before taxes from Consumer Banking decreased by $10.3 million, or 41%, to $14.5 million for the third quarter of 2025[59]. - Net income attributable to BOK Financial Corporation shareholders for Q3 2025 was $140,894,000, compared to $139,999,000 in Q3 2024, reflecting a slight increase of 0.6%[192]. Revenue and Income Sources - Net interest income totaled $337.6 million, an increase of $9.5 million over the prior quarter, with a net interest margin expanding 11 basis points to 2.91%[10]. - Fees and commissions revenue reached $204.4 million, up $7.1 million from the previous quarter, driven by increased municipal underwriting activity[10]. - Other operating revenue increased to $210.7 million for the third quarter of 2025, up $3.6 million from the second quarter of 2025, driven by growth in investment banking revenue[21]. - Total tax-equivalent interest revenue for the third quarter of 2025 was $9.5 million, a decrease of $3.9 million compared to the previous quarter[20]. - Total other operating revenue for the nine months ended September 30, 2025, was $603,848,000, down from $629,597,000 in the same period of 2024, a decline of 4.1%[191]. Loan and Deposit Growth - Period end outstanding loan balances grew by $573 million to $24.9 billion, with average loan balances increasing by $650 million to $24.8 billion[10]. - Period end deposits increased by $254 million to $38.5 billion, with a loan to deposit ratio of 65%[10]. - Average outstanding loan balances attributed to Commercial Banking increased by $386 million, or 2%, to $20.3 billion over the second quarter of 2025[56]. - Average deposits for the third quarter of 2025 reached $38.481 billion, an increase of $345 million or 0.9% compared to the second quarter of 2025[130]. - Total deposits for BOK Financial reached $38.5 billion as of September 30, 2025, an increase from $38.2 billion in the previous quarter[138]. Expenses and Efficiency - Other operating expense for Q3 2025 totaled $369.8 million, an increase of $15.3 million from Q2 2025, with an efficiency ratio of 66.66%[39]. - Personnel expense was $226.3 million, up $11.6 million compared to Q2 2025, driven by a $5.4 million increase in cash-based incentive compensation due to stronger underwriting and loan origination activity[40]. - Non-personnel expense increased to $143.4 million, reflecting a $4.0 million rise in mortgage banking costs[41]. - The efficiency ratio for Q3 2025 was 66.66%, indicating the company's ability to manage its expenses relative to its income[155]. Capital and Equity - The tangible common equity ratio improved to 10.06% at September 30, 2025, up from 9.63% at June 30, 2025[10]. - As of September 30, 2025, the company's equity capital was $6.0 billion, reflecting a $132 million increase from June 30, 2025[145]. - The common equity Tier 1 capital ratio stood at 13.60% as of September 30, 2025, significantly above the minimum requirement of 4.50%[150]. - The total capital surplus as of September 30, 2025, was $1,447,084, an increase from $1,441,326 as of June 30, 2025, representing a growth of approximately 0.4%[195]. - Net income less cash dividends paid contributed to a $105 million increase in equity during Q3 2025[145]. Credit Quality and Losses - The provision for expected credit losses was $2.0 million in Q3 2025, reflecting loan growth, while net charge-offs were $3.6 million, or 0.06% of average loans[10]. - The total provision for credit losses for the quarter was $2,000 thousand, with an ending balance for the allowance for loan losses at $277,692 thousand, up from $277,049 thousand at June 30, 2025[110]. - Net charge-offs in Q3 2025 were $3.6 million, or 0.06% of average loans on an annualized basis, primarily due to a single commercial services loan[118]. - Total nonperforming assets decreased to $74.145 million at September 30, 2025, from $81.056 million at June 30, 2025[124]. - The allowance for loan losses to nonaccruing loans was 426.92% at September 30, 2025[124]. Market and Economic Outlook - The economic outlook includes a GDP growth forecast of 1.6% over the next 12 months, with a civilian unemployment rate of 4.5% in Q4 2025[117]. - The company anticipates three rate cuts over the next four quarters, bringing the federal funds target range to 3.25%[117]. - WTI oil prices are projected to average $57.08 per barrel over the next 12 months[117]. - The probability weighting for economic scenarios remained unchanged, with a 50% base case, 35% downside, and 15% upside[114]. Shareholder Returns - A regular cash dividend of $36.1 million, or $0.57 per common share, was paid during Q3 2025, with an increase to $0.63 per share approved for the next quarter[11]. - The company repurchased 365,547 shares of common stock at an average price of $111.00 per share in Q3 2025[10]. - Dividends declared per share increased to $0.57 in Q3 2025 from $0.55 in Q3 2024, representing a growth of 3.6%[191]. - The company repurchased 366 shares of common stock for a total amount of $(40,981) during the quarter[195].