BOK Financial Corporation Q4 FY2025 earnings call

• Earnings: Q4 earnings were $177.3 million ($2.89 EPS) and full-year was $578 million ($9.17 EPS), both record highs.
• Loan growth: Solid loan growth of over $1.5 billion or 6.4% for the year, with Q4 growth of $786 million. Growth was broad-based by geography and lending segment.
• Net interest margin: Expanded seven basis points in Q4, with core net interest income growing.
• Fee income: Fiduciary, asset management, and transaction card lines had record quarters, with AUMA reaching $126 billion.
• Credit quality: Excellent, with a combined allowance of 1.28% of outstanding loans and a net charge-off rate of three basis points.
• Capital: Robust, with tangible common equity at 9.5% and CET1 at 12.9%, and over 2.6 million shares repurchased in Q4.

For the fourth quarter, outstanding loan balances grew $786 million or 3.2% sequentially. The core C&I portfolio and healthcare/energy portfolios posted strong results, with Texas contributing $561 million of the growth. Net interest income increased, and the net interest margin expanded seven basis points. Fee income was very strong, with total fee income increasing 5.1% sequentially, and the fee-based engine contributing $801 million to revenue, which is 38% of total revenue. AUMA surpassed $126 billion in the fourth quarter.

• Loan growth: End-of-period loan growth expected in the upper single digits.
• Net interest income: Expected $1.44 billion to $1.48 billion for 2026.
• Fee income: Expected $800 million to $825 million in 2026.
• Expense efficiency: Full-year average efficiency ratio expected 63% to 64% in 2026.
• Provision expense: Expected $25 million to $45 million in 2026.

• Market conditions: Could impact trading revenue, as trading performance is sensitive to market dynamics.
• Competition: Intense competition for deposits and in certain markets could affect growth.
• Credit normalization: Eventually, credit metrics may return to more normal levels, potentially affecting provision levels.

Q: Peter Winter asks about drivers of upper single-digit loan growth.

A: Stacy Kymes states loan growth is diverse by geography and lending type, with mortgage finance contributing but not the main driver.

Q: Peter Winter asks about future share buybacks.

A: Marty Grunst says share buybacks are opportunistic and shareholder value-oriented.

Q: Michael Rose asks about deposit growth and competition.

A: Marty Grunst discusses deposit growth, competitive environment, and deposit betas.

Q: David Chiaverini asks about fee income and trading drivers.

A: Martin Grunst and Scott Grauer talk about trading volume normalization and demand in mortgage-backed securities and municipal sectors.

Q: Jon Arfstrom asks about mortgage finance growth in 2026.

A: Stacy Kymes expects upper single-digit growth for mortgage finance in 2026.

Q: Jared Shaw asks about credit outlook.

A: Stacy Kymes says credit expected to stay strong, driven by loan growth and economic outlook.

Q: Woody Lay asks about mortgage finance funding.

A: Martin Grunst says mortgage finance portfolio will be funded by broader funding mix.

Q: Brett Rabatin asks about NII guidance and loan yields.

A: Martin Grunst and Stacy Kymes discuss NII guide and loan yield drivers related to SOFR.