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BOK FINANCIAL CORP (BOKF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was a clean beat: diluted EPS $2.19 vs consensus ~$1.99*, and total revenue ~$535.3M vs ~$520.1M*, aided by margin expansion, fee strength, and accelerating loan growth . Values retrieved from S&P Global.
  • Net interest margin rose 2 bps to 2.80% and core NIM (ex-trading) increased 7 bps to 3.12%, while efficiency improved to 65.4% from 68.3% in Q1, positioning for positive operating leverage .
  • Period-end loans grew 2.5% sequentially to $24.3B on CRE and consumer strength; asset quality remained exceptional with NPAs at 0.33% and net charge-offs of $561K .
  • FY25 guidance largely reaffirmed; provision outlook lowered vs Q1 (now “below 2024” $18M) and expenses guided to the lower end of mid-single digits—supporting sentiment and estimate revisions .
  • Potential catalysts: mortgage finance launch (commitments targeted to ~$500M by year-end), sustained fee-income momentum (record fiduciary/transaction card/deposit fees), and continued deposit pricing optimization .

What Went Well and What Went Wrong

What Went Well

  • Broad-based fee income strength: total fees & commissions rose $13.2M QoQ to $197.3M; record quarters in fiduciary & asset management, transaction card, and deposit service charges . “Three of the business activities…posted record revenue during the quarter” — Scott Grauer .
  • Margin expansion and NII growth: net interest income +$11.9M QoQ to $328.2M; reported NIM +2 bps and core NIM ex-trading +7 bps, driven by fixed asset repricing and deposit pricing optimization — “really good lift out of the fixed asset repricing… and deposit pricing” — CFO Marty Grunst .
  • Loan growth re-accelerated: period-end loans +$602M (+2.5%) with CRE +6.9% and individuals +6.4%; core C&I (services + general business) +1.1% — “The word…is momentum” — CEO Stacy Kymes .

What Went Wrong

  • Non-personnel expenses increased $6.4M QoQ (technology projects and operational losses), lifting total operating expenses to $354.5M (+2.0% QoQ) .
  • Trading fee income remains below prior-year levels despite sequential improvement (Markets & Securities fees -20.3% YoY), reflecting normalized but lower activity vs 2024 highs .
  • Average deposits decreased $222M QoQ (driven by demand deposits -$198M), modestly raising the loan-to-deposit ratio to 64% (63.5% period-end) .

Financial Results

EPS and Revenue vs Prior Periods

MetricQ2 2024 (oldest)Q1 2025Q2 2025 (newest)
Diluted EPS ($)$2.54 $1.86 $2.19
Net Interest Income ($MM)$296.0 $316.3 $328.2
Total Other Operating Revenue ($MM)$259.7 $186.0 $207.1
Total Revenue ($MM)$555.7 $502.3 $535.3

Notes: Total Revenue is Net Interest Income + Total Other Operating Revenue (citations provided for each component).

Margins and Efficiency

MetricQ2 2024 (oldest)Q1 2025Q2 2025 (newest)
Net Interest Margin (%)2.56 2.78 2.80
Core NIM ex-Trading (%)2.94 3.05 3.12
Efficiency Ratio (%)59.83 68.31 65.42

Segment Breakdown (Revenue and Pre-tax Contribution)

SegmentCombined Net Interest & Fee Revenue ($000) Q2 2024Combined Net Interest & Fee Revenue ($000) Q1 2025Combined Net Interest & Fee Revenue ($000) Q2 2025Net Income Before Taxes ($000) Q1 2025Net Income Before Taxes ($000) Q2 2025
Commercial Banking257,476 233,415 234,226 139,983 141,575
Consumer Banking101,416 94,047 94,903 22,122 24,746
Wealth Management142,709 140,838 148,494 32,726 40,749

KPIs

KPIQ2 2024 (oldest)Q1 2025Q2 2025 (newest)
Period-end Loans ($B)24.554 23.690 24.292
Period-end Deposits ($B)36.242 38.282 38.246
Loan-to-Deposit Ratio (%)67.7 61.9 63.5
Common Equity Tier 1 (%)12.10 13.31 13.59
Tangible Common Equity Ratio (%)8.38 9.48 9.63
Nonperforming Assets ($MM)93.0 85.3 81.1
NPA / Loans + REO (%)0.38 0.36 0.33
Net Charge-offs ($000)6,945 1,105 561
Assets under Mgmt/Administration ($B)107.5 114.0 117.9

Guidance Changes

MetricPeriodPrevious Guidance (Q1’25)Current Guidance (Q2’25)Change
End-of-Period LoansFY 2025Mid to upper single-digit growth Mid to upper single-digit growth Maintained
End-of-Period Investment SecuritiesFY 2025Flat Flat Maintained
Net Interest IncomeFY 2025$1.325–$1.375B $1.325–$1.375B Maintained
Fees & CommissionsFY 2025$775–$825M $775–$825M Maintained
Total RevenueFY 2025Mid to upper single-digit growth Mid to upper single-digit growth Maintained
ExpensesFY 2025Mid single-digit growth Mid single-digit growth; expect lower end of range Lowered (range bias)
Efficiency RatioFY 2025~65%; declining quarterly trend ~65%; declining quarterly trend Maintained
Provision ExpenseFY 2025$20–$40M Below 2024 levels (2024: $18M) Lowered

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Margin trajectory & deposit betasNIM expansion (+7 bps); confidence in down-rate betas NIM +3 bps; fixed asset repricing supportive NIM +2 bps; core NIM +7 bps; deposit pricing optimization continues Improving
Loan growth and portfolio mixCore C&I growth; energy/healthcare headwinds; CRE fund-up to come Loans -1.8% QoQ; energy paydowns; CRE/consumer up Loans +2.5%; CRE +6.9%; individuals +6.4%; core C&I +1.1% Accelerating
Mortgage finance launchN/ATeam hiring and system buildout underway Launch imminent; ~$500M commitments by YE; 25–50% utilization Positive setup
Fee businesses momentumFee income 40% of revenue; strong mix Fees -$22.8M QoQ on trading volatility Fees +$13.2M QoQ; record fiduciary/card/deposit fees Rebound
Macro/regulatory (tariffs/M&A)Favorable regulatory backdrop; organic-first M&A stance Market volatility impacted trading; clarity improving Tariff/tax noise fading; M&A “icing on the cake,” organic growth focus Constructive

Management Commentary

  • CEO: “The word that comes to mind for this quarter is momentum…accelerated loan growth, strong fee income performance and continued margin expansion…while maintaining exceptional credit quality.”
  • CEO on credit: “NPAs…decreased…to 31 basis points…net charge-offs averaging one basis point over the last twelve months.”
  • CFO: “We got really good lift out of the fixed asset repricing… and deposit pricing… almost seven basis points of [core margin] expansion.”
  • EVP Wealth: “Three of the business activities… posted record revenue during the quarter, including our fiduciary and asset management, transaction card, and deposit service charges.”

Q&A Highlights

  • Margin outlook: Core drivers (fixed asset repricing, deposit pricing) remain supportive; trading balances tactical and fully hedged; NIM expected to benefit from mix and loan growth .
  • Loan growth cadence: Payoffs in energy concentrated in April; May/June stable; CRE fund-up continuing; mortgage warehouse to add commitments in H2 .
  • Fee trajectory: Fiduciary/asset management, transaction card, and deposit service charges show strong y/y growth; syndication and investment banking benefiting from improved pipelines .
  • Mortgage finance economics: ~$500M commitments by YE; 25–50% utilization; operational risk managed with systems/people; strong client overlap with institutional fixed income trading .
  • Deposits and funding: L/D ~64% provides flexibility; deposits expected to grow; securities cash flow ~$650M/quarter supports repricing/funding .

Estimates Context

MetricQ2 2024 (oldest)Q1 2025Q2 2025 (newest)
Diluted EPS – Actual ($)2.54 1.86 2.19
Diluted EPS – Consensus Mean ($)1.935*1.986*1.991*
Total Revenue – Actual ($MM)547.725*502.292*535.264*
Total Revenue – Consensus Mean ($MM)516.383*520.361*520.096*
  • Q2 2025 EPS beat by ~$0.20 and revenue beat by ~$15.2M; Q1 2025 was a miss on both; Q2 2024 was a beat on both. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Estimate revisions likely higher: clear beats on EPS and revenue plus margin expansion support upward adjustments to NII and EPS forecasts .
  • Positive operating leverage: core NIM rising and efficiency ratio improving while expense growth biases to the lower end of mid-single digits .
  • Loan growth momentum: CRE funding and consumer strength offset specialty paydowns; mortgage warehouse adds incremental growth vectors in H2 .
  • Fee-income resiliency: record fiduciary, card, and deposit fees diversify earnings and dampen rate sensitivity; trading normalized .
  • Capital/credit strength: CET1 13.59%, TCE 9.63%, NPAs 0.33%, minimal charge-offs underpin flexibility for buybacks and growth investments .
  • Tactical deposit pricing: low L/D ratio and deposit optimization strategies support margin trajectory even without further Fed cuts .
  • Near-term trading implication: Momentum narrative, improved guidance tone on provisions, and mortgage finance launch are catalysts; watch fee strength continuity and operating expense discipline in Q3 .