BOKF Net Income Edges Up, Driven by Strong Loan Growth & Underwriting

TL;DR

**BOKF is a solid buy, showing strong loan growth and dividend hikes while keeping credit losses low.**

AI Summary

BOK Financial Corp (BOKF) reported a net income of $140.9 million, or $2.22 per diluted share, for Q3 2025, a slight increase from $140.0 million, or $2.19 per diluted share, in Q2 2025. Net interest income rose by $9.5 million to $337.6 million, with the net interest margin expanding 11 basis points to 2.91%. Fees and commissions revenue increased by $7.1 million to $204.4 million, primarily due to growth in investment banking revenue from increased municipal underwriting. Total operating expenses climbed by $15.3 million to $369.8 million, driven by an $11.6 million rise in personnel expense and a $3.6 million increase in non-personnel expense. Loan balances grew by $573 million to $24.9 billion, while deposits increased by $254 million to $38.5 billion. The provision for expected credit losses was $2.0 million, reflecting loan growth partially offset by improved economic forecasts. Nonperforming assets not guaranteed by U.S. government agencies decreased by $7.3 million to $67 million. The company repurchased 365,547 shares at an average price of $111.00 and increased its quarterly cash dividend to $0.63 per common share.

Why It Matters

BOKF's consistent net income growth and expanding net interest margin signal a healthy core banking operation, which is crucial for investor confidence in a competitive financial landscape. The significant increase in investment banking revenue, particularly from municipal underwriting, demonstrates BOKF's ability to diversify its income streams beyond traditional lending, offering resilience against potential interest rate fluctuations. For employees, higher incentive compensation and regular salary adjustments indicate a positive internal environment. Customers benefit from a stable bank with growing assets under management, while the broader market sees a regional bank effectively navigating economic conditions and maintaining strong capital ratios, contrasting with some peers facing deposit outflows.

Risk Assessment

Risk Level: low — The risk level is low due to several factors: nonperforming assets not guaranteed by U.S. government agencies decreased by $7.3 million to $67 million, indicating improving asset quality. The provision for expected credit losses was a modest $2.0 million, reflecting a slight improvement in economic forecast scenario assumptions. Furthermore, the common equity Tier 1 capital ratio remained strong at 13.60% at September 30, 2025, well above regulatory minimums.

Analyst Insight

Investors should consider BOKF for its stable growth, increasing dividend, and strong capital position. The company's ability to grow loans and deposits while managing credit risk effectively suggests continued financial health. The dividend increase to $0.63 per share signals management's confidence in future earnings.

Financial Highlights

debt To Equity

N/A

revenue

$542.0M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$140.9M

eps

$2.22

gross Margin

N/A

cash Position

N/A

revenue Growth

+2.5%

Revenue Breakdown

Key Numbers

• $140.9M — Net Income (Increased from $140.0M in Q2 2025, showing slight growth.)
• 2.91% — Net Interest Margin (Expanded 11 basis points from 2.80% in Q2 2025, indicating improved profitability.)
• $24.9B — Outstanding Loan Balances (Grew by $573M from June 30, 2025, reflecting broad-based loan growth.)
• $38.5B — Period End Deposits (Increased by $254M from June 30, 2025, demonstrating deposit gathering success.)
• $2.0M — Provision for Expected Credit Losses (Low provision, partially offset by improved economic forecasts despite loan growth.)
• $67M — Nonperforming Assets (Decreased by $7.3M from June 30, 2025, indicating improving asset quality.)
• 13.60% — Common Equity Tier 1 Capital Ratio (Strong capital ratio, slightly up from 13.59% in Q2 2025, ensuring financial stability.)
• $0.63 — Quarterly Cash Dividend (Increased from $0.57 per common share, signaling confidence in future earnings.)

Key Players & Entities

• BOK FINANCIAL CORP (company) — registrant
• $140.9 million (dollar_amount) — Q3 2025 net income
• $2.22 (dollar_amount) — Q3 2025 diluted EPS
• $9.5 million (dollar_amount) — increase in net interest income
• 2.91% (dollar_amount) — Q3 2025 net interest margin
• $7.1 million (dollar_amount) — increase in fees and commissions revenue
• $24.9 billion (dollar_amount) — period end outstanding loan balances
• $38.5 billion (dollar_amount) — period end deposits
• $2.0 million (dollar_amount) — provision for expected credit losses
• 13.60% (dollar_amount) — common equity Tier 1 capital ratio

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can impact net interest income and margin. The net interest margin expanded 11 basis points to 2.91% in Q3 2025, indicating a positive current trend, but future rate movements pose a risk.
• Credit Risk and Loan Portfolio Quality [medium — financial]: Loan balances grew by $573 million to $24.9 billion. While the provision for credit losses was low at $2.0 million and nonperforming assets decreased by $7.3 million to $67 million, continued loan growth and economic fluctuations present ongoing credit risk.
• Operating Expense Management [low — operational]: Total operating expenses increased by $15.3 million to $369.8 million, driven by higher personnel costs ($11.6 million) and mortgage banking costs ($3.6 million). Effective management of these expenses is crucial for profitability.
• Market Volatility and Economic Conditions [medium — market]: The company's performance is tied to broader economic conditions, which influence loan demand, credit quality, and investment banking activity. Improved economic forecasts partially offset loan growth impact on credit loss provisions.

Industry Context

BOK Financial operates in a competitive banking landscape influenced by interest rate environments and economic growth. The sector is seeing increased focus on digital transformation and fee income diversification. BOKF's strategy appears to leverage its investment banking capabilities and manage its balance sheet effectively in this environment.

Regulatory Implications

As a financial institution, BOKF is subject to stringent regulatory oversight concerning capital adequacy, credit risk management, and consumer protection. Compliance with evolving regulations is critical to maintaining operational stability and avoiding penalties.

What Investors Should Do

1. Monitor Net Interest Margin (NIM) trends.
2. Assess loan growth and credit quality indicators.
3. Evaluate expense management effectiveness.
4. Consider the impact of economic forecasts on credit provisions.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing net income of $140.9M, NIM of 2.91%, and loan balances of $24.9B.
• 2025-06-30: End of Q2 2025 — Prior period comparison for Q3 2025 results, with net income of $140.0M and NIM of 2.80%.

Glossary

Net Interest Margin (NIM)

The difference between the interest income generated by a bank and the interest it pays out to its lenders, expressed as a percentage of its interest-earning assets. (Expanded 11 basis points to 2.91% in Q3 2025, indicating improved profitability on interest-earning assets.)

Provision for Expected Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (Low provision of $2.0 million in Q3 2025, reflecting improved economic forecasts despite loan growth.)

Nonperforming Assets

Assets, typically loans, on which the borrower has not made scheduled payments for a specified period (e.g., 90 days). (Decreased by $7.3 million to $67 million, indicating improving asset quality.)

PPNR

Pre-Provision Net Revenue, a non-GAAP measure representing a bank's earnings before accounting for loan loss provisions and taxes. (Reported at $178.6 million in Q3 2025, providing a view of operating profitability before credit loss impacts.)

Common Equity Tier 1 Capital Ratio

A measure of a bank's core capital, expressed as a percentage of its risk-weighted assets. (Reported as 13.60%, a strong ratio indicating robust capital adequacy for financial stability.)

Year-Over-Year Comparison

Compared to the previous filing (Q2 2025), BOKF has shown a slight increase in net income from $140.0M to $140.9M and a notable expansion in Net Interest Margin from 2.80% to 2.91%. Loan balances have grown by $573 million, and deposits by $254 million. Operating expenses have also increased by $15.3 million, primarily due to higher personnel costs. Nonperforming assets have decreased, indicating improved asset quality.

Key Financial Figures

• $0.00006 — ich registered Common Stock, par value $0.00006 per share BOKF Nasdaq Stock Market In
• $140.9 m — BOK Financial reported net income of $140.9 million, or $2.22 per diluted share, for
• $2.22 — ported net income of $140.9 million, or $2.22 per diluted share, for the third quarte
• $140.0 m — r the third quarter of 2025 compared to $140.0 million, or $2.19 per diluted share, for
• $2.19 — of 2025 compared to $140.0 million, or $2.19 per diluted share, for the second quart
• $178.6 million — 2025. PPNR 1 , a non-GAAP measure, was $178.6 million for the third quarter of 2025, compared
• $180.7 million — the third quarter of 2025, compared to $180.7 million in the second quarter of 2025. Highli
• $337.6 m — included: Net interest income totaled $337.6 million, an increase of $9.5 million over
• $9.5 million — totaled $337.6 million, an increase of $9.5 million over the prior quarter. Net interest ma
• $204.4 m — . Fees and commissions revenue totaled $204.4 million, an increase of $7.1 million over
• $7.1 million — totaled $204.4 million, an increase of $7.1 million over the prior quarter led by growth in
• $369.8 m — ivity. Other operating expense totaled $369.8 million, an increase of $15.3 million ove
• $15.3 million — totaled $369.8 million, an increase of $15.3 million over the prior quarter. Personnel expen
• $11.6 million — prior quarter. Personnel expense was up $11.6 million due to higher incentive compensation an
• $3.6 million — sation. Non-personnel expense increased $3.6 million led by greater mortgage banking costs.

Filing Documents

• bokf-20250930.htm (10-Q) — 6961KB
• a20250930bokfex311.htm (EX-31.1) — 12KB
• a20250930bokfex312.htm (EX-31.2) — 12KB
• a20250930bokfex32.htm (EX-32) — 8KB
• 0000875357-25-000057.txt ( ) — 26866KB
• bokf-20250930.xsd (EX-101.SCH) — 67KB
• bokf-20250930_cal.xml (EX-101.CAL) — 127KB
• bokf-20250930_def.xml (EX-101.DEF) — 405KB
• bokf-20250930_lab.xml (EX-101.LAB) — 961KB
• bokf-20250930_pre.xml (EX-101.PRE) — 676KB
• bokf-20250930_htm.xml (XML) — 7344KB

Financial Information

Part I. Financial Information

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2)

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2) 2 Market Risk (Item 3) 36

Controls and Procedures (Item 4) 41

Controls and Procedures (Item 4) 41 Consolidated Financial Statements – Unaudited (Item 1) 42 Nine-Month Financial Summary – Unaudited (Item 2) 92 Quarterly Financial Summary – Unaudited (Item 2) 93 Quarterly Earnings Trends – Unaudited 96

Other Information

Part II. Other Information

Legal Proceedings 97

Item 1. Legal Proceedings 97

Risk Factors 97

Item 1A. Risk Factors 97

Unregistered Sales of Equity Securities and Use of Proceeds 97

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 97

Other Information 97

Item 5. Other Information 97

Exhibits 98

Item 6. Exhibits 98 Signatures 99 GLOSSARY OF DEFINED TERMS The following items may be used throughout this report, including the consolidated financial statements and related notes. Term Definition AFS Available-For-Sale AOCI Accumulated Other Comprehensive Income ASU Accounting Standards Update ATM Automated Teller Machine Board Board of Directors of BOK Financial Corporation BOK Financial BOK Financial Corporation BOKF BOK Financial Corporation CODM Chief Operating Decision Maker Company BOK Financial Corporation EFT Electronic Funds Transfer FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank FTE Full Time Equivalent GAAP Generally Accepted Accounting Principles in the United States of America GDP Gross Domestic Product GNMA Government National Mortgage Association MSR Mortgage Servicing Rights Nasdaq National Association of Securities Dealers Automated Quotations PPNR Pre-Provision Net Revenue RMHFS Residential Mortgages Held for Sale SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate SVaR Stressed Value at Risk VA U.S. Department of Veterans Affairs VaR Value at Risk WTI West Texas Intermediate - 1 -

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations Performance Summary BOK Financial reported net income of $140.9 million, or $2.22 per diluted share, for the third quarter of 2025 compared to $140.0 million, or $2.19 per diluted share, for the second quarter of 2025. PPNR 1 , a non-GAAP measure, was $178.6 million for the third quarter of 2025, compared to $180.7 million in the second quarter of 2025. Highlights of the third quarter of 2025 compared to the second quarter of 2025 included: Net interest income totaled $337.6 million, an increase of $9.5 million over the prior quarter. Net interest margin expanded 11 basis points to 2.91% for the third quarter of 2025, compared to 2.80% for the prior quarter. For the third quarter of 2025, our core net interest margin excluding trading activities 1 , a non-GAAP measure, was 3.16% compared to 3.12% in the prior quarter. Fees and commissions revenue totaled $204.4 million, an increase of $7.1 million over the prior quarter led by growth in investment banking revenue driven by increased municipal underwriting activity. Other operating expense totaled $369.8 million, an increase of $15.3 million over the prior quarter. Personnel expense was up $11.6 million due to higher incentive compensation and regular compensation. Non-personnel expense increased $3.6 million led by greater mortgage banking costs. Period end outstanding loan balances totaled $24.9 billion at September 30, 2025, growing by $573 million over June 30, 2025, with broad-based growth across the loan portfolio. Average loan balances increased $650 million to $24.8 billion. The provision for expected credit losses of $2.0 million in the third quarter of 2025 reflects the impact of loan growth during the quarter, partially offset by a slight improvement in economic forecast scenario assumptions. Net charge-offs in the third quarter were $3.6 million, or 0.06% of average loans on an annualized basis. The resulting

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