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BOK FINANCIAL CORP (BOKF)·Q3 2025 Earnings Summary

Executive Summary

  • BOK Financial delivered solid Q3 2025 results: diluted EPS $2.22 and net income $140.9M, with net interest margin expanding +11 bps to 2.91% and core NIM +4 bps; loan growth was broad-based (+2.4% QoQ) while credit quality remained excellent .
  • Results beat Wall Street consensus on both EPS and revenue; EPS $2.22 vs $2.17 and revenue $546.4M vs $540.5M; prior quarter also beat, while Q1 2025 had misses on both lines (see table) [*].
  • Guidance was tightened: NII range narrowed ($1.325–$1.35B from $1.325–$1.375B), fees range narrowed ($775–$810M from $775–$825M), efficiency ratio raised to 65–66% (vs ~65%), and provision expected “well below 2024” (vs “below 2024”) .
  • Catalysts: record investment banking revenue driven by municipal underwriting, rising AUMA to $122.7B, and ongoing deposit beta optimization alongside strong capital ratios (CET1 13.6%, TCE 10.06%); share buybacks (365,547 shares at $111) support capital deployment .

Note: Values retrieved from S&P Global for estimates-marked entries (*).

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 2.91%, with core NIM up 4 bps; NII rose $9.5M QoQ, supported by fixed-rate asset repricing and lower deposit costs. “We expect those drivers to continue to support both margin and NII growth in future quarters.” — CFO Marty Grunst .
  • Record investment banking revenue and improved trading fees; total fees and commissions rose $7.1M QoQ to $204.4M, with municipal underwriting strength. “This was a record quarter for Investment banking revenue.” — Wealth EVP Scott Grauer .
  • Broad-based loan growth: total loans +$573M QoQ (+2.4%), with growth in core C&I, CRE (+4.2%), and loans to individuals (+4.9%). “We delivered broad-based growth across our loan portfolio.” — CEO Stacy Kymes .

What Went Wrong

  • Expenses elevated: total operating expense +$15.3M QoQ to $369.8M, driven by personnel (+$11.6M) and mortgage banking costs (+$4.0M), lifting efficiency ratio to 66.7% (from 65.4%) .
  • Energy balances declined $53M QoQ (−1.9%) amid consolidation-related payoffs; customer hedging revenue fell $1.8M reflecting lower energy derivative volumes .
  • Consumer Banking net income before taxes fell to $14.5M (from $24.7M), as the net cost of MSR hedge changes swung to a −$2.1M cost (vs +$1.6M benefit), and other operating expenses increased .

Financial Results

Headline Results vs Prior Periods and Estimates

MetricQ3 2024 (oldest)Q1 2025Q2 2025Q3 2025 (newest)
Revenue ($USD Millions)$514.3*$502.3*$535.3*$546.4*
Diluted EPS ($)$2.18 $1.86 $2.19 $2.22
Net Interest Margin (%)2.68% 2.78% 2.80% 2.91%
Efficiency Ratio (%)65.11% 68.31% 65.42% 66.66%

Note: Revenue values marked (*) are S&P Global actuals without document citations.

Beat/Miss vs Consensus (Wall Street)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
EPS: Actual vs Consensus Mean$2.18 vs $1.98*$1.86 vs $1.99*$2.19 vs $1.99*$2.22 vs $2.17*
Revenue: Actual vs Consensus ($MM)$514.3 vs $510.1*$502.3 vs $520.4*$535.3 vs $520.1*$546.4 vs $540.5*

Highlights: Q3 2025 EPS and revenue beat; Q2 2025 EPS and revenue beat; Q1 2025 both missed. Note: Values retrieved from S&P Global (*). Bold beats/misses: Q3 EPS beat, Q3 revenue beat; Q2 EPS beat, Q2 revenue beat; Q1 EPS miss, Q1 revenue miss.

Segment Performance (QoQ)

SegmentNet Interest Income + Fees ($000) Q2 2025Net Interest Income + Fees ($000) Q3 2025Net Income Before Taxes ($000) Q2 2025Net Income Before Taxes ($000) Q3 2025
Commercial Banking$234,226 $236,734 $141,575 $139,817
Consumer Banking$94,903 $96,522 $24,746 $14,490
Wealth Management$148,494 $155,142 $40,749 $36,606

KPIs and Balance Sheet

KPIQ3 2024Q2 2025Q3 2025
Period-End Loans ($B)$24.0 $24.3 $24.9
Period-End Deposits ($B)$37.2 $38.2 $38.5
Loan-to-Deposit Ratio (%)64.4% 63.5% 64.6%
Nonperforming Assets / Loans+REO (%)0.36% 0.33% 0.30%
Net Charge-Offs (annualized, % of avg loans)—% 0.01% 0.06%
CET1 Ratio (%)12.7% 13.6% 13.6%
Tangible Common Equity Ratio (%)9.2% 9.63% 10.06%
AUMA ($B)110.7 117.9 122.7

Guidance Changes

MetricPeriodPrevious Guidance (as of 07/21/25)Current Guidance (as of 10/21/25)Change
End-of-Period LoansFY 2025Mid to upper single-digit growth 5%–7% growth Maintained/Tightened
End-of-Period Investment SecuritiesFY 2025Flat Flat Maintained
Net Interest IncomeFY 2025$1.325–$1.375B $1.325–$1.35B Lowered (narrowed top)
Fees & CommissionsFY 2025$775–$825M $775–$810M Lowered (narrowed top)
Total RevenueFY 2025Mid to upper single-digit growth Mid single-digit growth Lowered
ExpensesFY 2025Mid single-digit growth; expect lower end Mid single-digit growth Maintained
Efficiency Ratio (Non-GAAP)FY 2025~65% 65%–66% Raised (less efficient)
Provision ExpenseFY 2025Below 2024 levels Well below 2024 levels Improved

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Mortgage warehouse finance launchLaunch planned; commitments targeted, platform build, staffing (added producers) Began fundings in Q3; ~$70M outstandings; commitments expected ~$500M by YE with ~50% utilization Scaling up as planned
Deposit pricing and betasStrong deposit beta optimization; cumulative interest-bearing beta ~74% (down-cycle) Continued optimization; cumulative cutting cycle betas 76% liabilities, 66% deposits; expect to hold/improve as rates decline Supportive to NIM
Trading revenue mix (fees vs NII)Transition to NII with steeper curve; total trading revenue normalized expected in Q2 Total trading revenue steady; fees +$1.1M; curve steepening shifts more revenue to NII Neutral to total revenue
Energy portfolio/payoffsHeadwind from consolidation; bottoming expected; strong hedging/leverage profile Energy balances −$53M QoQ; payoff activity abating; balances stabilizing Stabilizing
CRE funding and concentrationAnticipated fund-up of construction; under internal limits CRE balances +4.2% QoQ; disciplined concentration; office up but selective Tailwind
AUMA and investment bankingRecord AUMA in Q2; strong pipelines; municipal underwriting delayed in Q2 AUMA $122.7B (+4.1% QoQ); record investment banking revenue Strengthening
Credit qualityNPAs very low; provision below 2024 expected; reserves healthy NPAs 0.30%; NCOs 0.06%; combined allowance 1.32% Exceptional; may normalize

Management Commentary

  • CEO Stacy Kymes: “We delivered broad-based growth across our loan portfolio… Net interest margin continued to expand this quarter, increasing 11 basis points… Fee income was another solid contributor… record quarter for investment banking revenue… capital levels remain peer leading…” .
  • CFO Marty Grunst: “Net interest income increased $9.5 million and reported net interest margin expanded 11 basis points… core net interest income increased $11.3 million and core margin grew 4 basis points… drivers… fixed-rate asset repricing… decreasing deposit costs” .
  • Wealth EVP Scott Grauer: “Investment banking revenue… grew $5.0 million… record quarter… Municipal bond underwriting activity drove the strength” .

Q&A Highlights

  • Loan growth momentum: pipelines strong; disruption from market M&A creates opportunity; expect sustaining into Q4 and into 2026 core C&I and personal lending growth .
  • Mortgage warehouse finance: commitments targeted ~$500M by YE with ~50% utilization; line sizes typically $75–$100M; operational controls via MERS mitigate double-pledging risks .
  • Deposit beta trajectory: cumulative cutting cycle betas of ~76% for liabilities and 66% for deposits; expected to hold or improve with further cuts .
  • Expense clarification: Q3 personnel expense included ~$5.8M deferred comp (offset in other gains), ~$3M workforce realignment, and ~$5.1M cash incentive comp tied to production .
  • Credit tone: criticized assets up ~$50M on $25B loans—still abnormally low; expect eventual reversion to mean but no deterioration observed .

Estimates Context

  • Q3 2025: Actual EPS $2.22 vs $2.17 consensus — beat; Revenue $546.4M vs $540.5M — beat [*].
  • Q2 2025: Actual EPS $2.19 vs $1.99 — beat; Revenue $535.3M vs $520.1M — beat [*].
  • Q1 2025: Actual EPS $1.86 vs $1.99 — miss; Revenue $502.3M vs $520.4M — miss [*].

Where estimates may need to adjust:

  • Upward bias to NII/NIM assumptions given persistent core margin drivers and deposit repricing progress; fees outlook supported by record investment banking and stable asset management, though trading mix will tilt to NII with curve steepening .

Note: Values retrieved from S&P Global (*).

Key Takeaways for Investors

  • Margin trajectory remains constructive: fixed asset repricing and deposit beta optimization continue to lift NII and core NIM; curve steepening adds tailwind while trading mix shifts to NII, neutral to total revenue .
  • Loan growth is broad-based and sustainable: core C&I, CRE, and individual loans expanding; mortgage warehouse finance is a new growth vector with prudent operational controls .
  • Credit quality is a differentiator: NPAs at 0.30% and combined allowance 1.32%; management expects low charge-offs near term, with eventual normalization from “abnormally strong” levels .
  • Expense vigilance: Q3 expense uptick reflects incentives and transitional costs; efficiency ratio guided 65–66% for FY’25; monitor operating leverage as mortgage warehouse ramps .
  • Capital deployment balanced: CET1 13.6%, TCE 10.06%; share repurchases executed at $111 avg; robust liquidity (loan-to-deposit 65%) supports growth funding without pressuring pricing .
  • Near-term trading implications: Positive beats and margin expansion are supportive; record investment banking and AUMA momentum add catalysts; watch expenses and trading fee/NII mix as curve steepens .

Other Relevant Press Releases (Q3 2025)

  • Viamericas raised $113.6M led by Old National Bank with participation from BOK Financial; supports cross-border payments growth — tangential to fee businesses and treasury services .