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BOK Financial Corporation Stock Price: Quote, Forecast, Splits & News (BOKF)

Perplexity Finance

Company Profile

BOK Financial Corporation Price & Performance (BOKF)

Stock Performance

Updated Apr 25, 8:00 PM UTC

BOK Financial Corporation

$92USD

+$0.67 (+0.73%)

After Hours

+$2 (+2.17%)

Open

$90.51

Market Cap

$5.91B

Year High

$121.58

High

$92.69

P/E Ratio

10.6

Year Low

$85.08

Low

$90.51

Dividend Yield

2.43%

Volume

267.84K

Latest News

Analysts Downgrade BOK Financial After First-Quarter Miss
Apr 26, 2025
BOK Financial reported Q1 2025 earnings below analyst expectations, with EPS at $1.86 versus the anticipated $1.98 and revenue of $500.37 million, missing forecasts. Following the results, analysts lowered their EPS estimates and price targets, reflecting increased caution about the bank’s near-term growth prospects and sector performance.12
Investor Sentiment Shifts as BOK Financial Shares Decline
Apr 22, 2025
BOK Financial’s stock dropped by 2.58% after missing Q1 earnings and revenue targets. Fee income fell sharply, while net interest income rose slightly. Despite the setback, the company maintains strong capital levels and expects loan and deposit growth, but analysts remain divided on future performance amid sector headwinds.32
Earnings Slump Continues for BOK Financial Amid Portfolio Changes
BOK Financial’s first-quarter net income fell 12% from the previous quarter, continuing a year-long downward trend. Despite lower earnings, the company’s liquidity and capital ratios remain robust. Management forecasts loan growth and improved revenue for 2025, but efficiency ratios and portfolio shifts highlight ongoing operational challenges.42

What's Happening

Peers

Earnings

Report Date

Apr 21, 2025

Reported Revenue

500.4M

Miss -3.84%

Avg 1d Change

1.39%

Report Period

Q1 2025

Reported EPS

1.9

Miss -7.46%

Implied Move 1d

7.49%

Transcript

9m 50s

Welcome to BOK Financial Corporation's First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute. To prevent any background noise.

9m 59s

After the speakers' remarks, there will be a question and answer session. As a reminder, this conference is being recorded. I would now like to turn the presentation over to Heather King, Director of Investor Relations for BOK Financial Corporation. Please proceed.

10m 26s

Good afternoon, and thank you for joining our discussion of BOK first quarter twenty twenty five financial results. Our CEO, Stacy Combs, will provide opening comments and cover our loan portfolio and related credit metrics. Scott Brower, Executive Vice President of Wealth Management, will cover our fee based results. Our CFO, Marty Grintz, will then discuss financial performance for the quarter and our forward guidance. Slide presentation and press release are available on our website at bokf.com. We refer you to the disclaimers on Slide two regarding any forward looking statements made during this call. I'll now turn the call over to Stacy Kymes, who will begin on Slide four.

11m 4s

Thank you, Heather.

11m 5s

We appreciate you joining the call this afternoon. We are pleased to report earnings of 119,800,000.0 or EPS of $1.86 per diluted share for the first quarter. At BOK Financial, we worked hard over the years to build a reputation as a strong, stable and growing financial services provider. In today's volatile market environment, the stability of our franchise is apparent.

11m 27s

We have a consistent risk management framework built to weather many different economic and market cycles. Our capital levels remain strong and in fact improved yet again this quarter with TCE reaching 9.5%. And CET1 reaching 13.3%. These strong capital levels not only helped insulate us from market disruptions, but also allow us to confidently and strategically plan for future growth.

11m 51s

Another insulator is our liquidity position, At 62%, our loan to deposit ratio is one of the lowest in our peer group. Additionally, part of our stability story is a disciplined approach to credit that doesn't change over cycles. That consistency has driven solid performance in our loan portfolio with low criticized classified levels. And the combined allowance at a healthy 1.4% of outstanding loans. Our long term credit performance of 26 basis points of charge off is peer leading and we believe in our ability to continue outperforming the market in this area. Commercial real estate is another area that can be sensitive to market conditions. Our CRE concentration is currently well below limits, which at 185% limit on Tier one capital plus reserves in itself is low compared to peers. Our financial performance this quarter reflects our ability to navigate through times of the extraordinary market volatility. Despite recent market disruptions and geopolitical events, our diverse business model has performed well. Our strategy at BOK Financial is to produce long term sustainable value for our shareholders and we base our decisions on that strategy. While we may see fluctuating results in some of our business lines during unstable conditions, as we did this quarter, these businesses are built for long term success.

13m 8s

During the quarter, net interest income was strong and we continue to see net interest margin expansion for the third quarter in a row as we recognize the down rate deposit betas with continued lower repricing. We are already showing a total liability beta of 74% which is one of the highest in our peer group. The lack of clarity and volatility in the financial markets impacted our fee income.

13m 31s

Specifically in our trading business.

13m 33s

Training fees in January were in line with our expectations, The trading volumes and spread were compressed during February and March as uncertainty in the market slowed fixed income trading. However, as we mentioned last quarter, we expected a mix shift in trading revenue to net interest income as the yield curve steepened and we saw that come to fruition in Q1 with some of our fee income decline recaptured in net interest income growth.

13m 59s

Scott will talk more about this in his commentary. Consistent with the rest of the industry, loan growth in the first quarter has been challenging. As you can see on slide six, we experienced contraction in our loan portfolio. Mainly driven by pullback in our energy book. Excluding energy, our total loan portfolio was relatively consistent with prior quarter, Loan balances in the Energy business decreased 12.1% linked quarter. Our appetite for adding new Energy transactions is and we're proactive in supporting our customers in this space. Over the last few quarters, the energy industry has been consolidating. Which has generated payoffs in the portfolio. We expect these balances will rebound over time as the market adjusts. Our core C and I loan portfolio which represents our combined services and general business portfolios, was relatively stable linked quarter contracting only 0.7%. On a year over year basis, these portfolios are still showing positive results growing 4.2%. Our Healthcare business loans decreased 4.5% linked quarter. We set a new record for Healthcare commitment production in Q1 However, payoff levels have remained elevated relative to historical standards and more than offset the increased outstandings. Payoff activity is a normal component of this business and was driven by increases in asset sales by sponsors, and refinancing into non bank long term non recourse loan options.

15m 23s

We expect payoff activity especially related to refinances to moderate and pipelines to remain robust. Our commercial real estate business increased 2.1% quarter over quarter.

15m 35s

With the majority of the growth coming from multifamily housing and industrial projects. We are starting to see the loans that we originated in 2024 fund up as they move through the construction phase as we signaled the past couple of quarters. We expect to see further growth in outstandings in the second half of the year. As I mentioned last quarter, we are expanding into the mortgage finance and warehouse lending business. This initiative is progressing nicely with the system implementation well underway the talent already in place. This lays the foundation for a launch of this new line of business in the September to October timeframe.

16m 10s

This won't be a monoline offering and we believe that this will unlock value across our existing lines of business and allow us to better support and engage with the more than 500 independent mortgage originators that we do business with today. Transitioning to slide seven, credit quality remains exceptional across the loan portfolio. This isn't a new story for us. We've consistently consistently shown peer leading credit outcomes over the last thirty years across good and challenging market cycles. [indiscernible] by the U. S. Government increased $36,000,000 to 79,000,000 However, this is coming off the lowest levels in the last twenty years and remains exceptionally low. The resulting non performing assets, the period end loans and repossessed assets increased 15 basis points to 33 basis points. Committed criticized assets also remained very low relative to historical standards. In addition, we had minimal net charge offs of $1,100,000 during the quarter and net charge offs have averaged four basis points over the last twelve months. We expect net charge offs to remain below historical norms in the future. Our combined allowance to credit losses is $331,000,000 or 1.4% of outstanding loans, which is a healthy reserve level. Overall, I'm pleased with the results this quarter.

17m 29s

We are focused on people and process. Our exceptional team demonstrates the grit and determination it takes to succeed in a very dynamic and fast changing market. We continue to add revenue generating team members, our sales process continues to produce opportunities for us going forward. And now I'll turn the call over to Scott. Thank you, Stacy. Turning to our operating results for the quarter on slides nine and ten. Total fee income decreased $22,800,000 on a linked quarter basis. Contributing $184,100,000 to revenue. As Stacy mentioned, market volatility resulting from uncertainty surrounding U. S. Domestic and foreign policy affected our trading business this quarter. But this business is designed to produce solid long term results. To give you a sense of the composition of our trading portfolio, more than 97% is residential mortgage backed securities, issued by US government agencies. Even in more challenging environments, the credit quality of this portfolio is high, and comes with limited basis risk. This quarter, you started to see the transition from fee income to the trading related net interest income that we discussed in our last call. During the quarter, total trading revenue was 23,300,000.0 which was down from $37,700,000 in the prior quarter.

18m 50s

Dollars 10,600,000.0 of fee revenue shifted from fees to net interest income as the yield curve steepened. The remainder of the decline in trading revenue reflects lower MBS trading volumes and tightened spreads as client demand was muted toward the end of the first quarter. We also experienced seasonally weaker pipelines in our municipal desk. We provided a table on slide nine to allow you to see this dynamic. Mortgage banking revenue grew 1,700,000.0 linked quarter coming in at 19,800,000.0 driven by higher mortgage production as client demand begins to increase and inventory constraints ease slightly. Turning to Slide 10. Our Asset Management and Transactions businesses were very consistent with the prior quarter contributing $133,200,000 in revenue.

19m 43s

Importantly, there is diversification within this portfolio. With 43% fixed income 34% equities, 15% cash, and the remainder in alternatives. AUMA decreased $659,000,000 linked quarter reflecting the volatile market conditions during Q1. And now, I'll hand the call over to Marty. Cover the financials. Thank you, Scott. Turning to slide 12. Net interest income was up 3,200,000.0 and headline net interest margin expanded three basis points. Reflecting growth in trading related net interest income.

20m 21s

Core net interest margin excluding trading decreased four basis points and was driven by several factors. The securities and fixed rate loan portfolios continue to reinvest cash flows at higher current market yields. The upward repricing in the securities portfolio was dampened this quarter from lower accretion of purchase discount. Non interest bearing DDA balances declined slightly coming off seasonal highs of Q4. While these balances were sequentially lower, both the average balance and the trends within the quarter were aligned with our expectations. Loan fees declined during the quarter after being elevated for the prior two quarters. Negatively impacted effective loan yields. Loan fees are now in line with our typical historical and seasonal patterns. Loan spreads were pressured due to a mix shift within the loan portfolio with higher spread energy loans being replaced with narrower spread core C and I loan.

21m 15s

And of course the lower day account impacted Q1 versus Q4. Each of these factors vary in terms of their predictability and stability of trends. Fixed rate asset repricing has clear drivers and an established supportive trend. DDA mix shift seems to have largely run its course, and normal seasonality and customer usage variability have been more visible lately.

21m 37s

Over time, we have demonstrated the ability to generate very good loan growth in our specialty lines of business, and we believe that represents future loan yield opportunity. Turning to Slide 13. Total expenses were consistent with prior quarter. Personnel expenses grew $3,500,000 largely driven by annual merit increases in the first quarter. Seasonally higher employee benefits costs driven by payroll taxes were offset by lower incentive compensation costs resulting from reduced trading activity. Non personnel expense decreased $3,600,000 led by a reduction in mortgage banking costs.

22m 13s

Slide 14 provides an update on our outlook for full year 2025. Loan balance projections reflect continued fund up activity on construction loans in the CRE portfolio, continued growth in core C and I and the successful launch of our mortgage finance business later in the year. We recognize the economic policy uncertainty adds some risk to this guidance.

22m 37s

Our net interest income expectations remain unchanged.

22m 41s

This assumes two twenty five basis point rate cuts with a small amount of upside should additional cuts materialize. I will note that trading related net interest income will be impacted by rate levels and curve steepness, which would largely be offset by trading related fee income. We widened the range of our guidance for fees and commissions given the impact of economic and market uncertainty on activity within our fixed income trading business.

23m 6s

Lastly, on credit, nonperforming assets are remarkably low and portfolio credit quality is very strong. All of which supports our expectation that charge offs will remain well controlled for the foreseeable future. With that, I would like to hand the call back to the operator for Q and A. Which will be followed by closing remarks from Stacy.

23m 28s

We will now begin the question and answer session.

23m 41s

And your first question comes from the line of Jared Shaw with Barclays. Jared? Please go ahead. Hi, thanks a lot. Good afternoon. Hey, Jared. Welcome.

23m 52s

Thanks. Thanks. Good to be back on the call.

23m 56s

Maybe just first looking at the the dynamic with trading income and the trading fees versus the NII when you look at total trading revenue still down. Is all of that $14,000,000 roughly due to the lower volume as you said? And at some point I guess when what's a normalized level you say for total trading revenue? Is it closer to what we have this quarter? Or should we expect to see that start to trend higher? Yes, Jared. So short answer to your first question is yes. That was just all volume driven. There's nothing else within there. And yes, we do expect to see trends come back about, you know, it's certainly market dependent, but our view is that that trends back up here over the second quarter in trading business. As a matter of fact, the first few weeks of the quarter, we've seen some rebound activity there. So that gives us some confidence about how that trends going forward. And so, Jared, this is Scott. So I would add that so as Stacy mentioned early in the call, we actually on our trading activity, specifically in the mortgage backed securities, we started the year very solid out of the gates.

25m 16s

Our January was in line and actually growing versus our previous results in 2024. And then as the economic and trade uncertainties, I'll call them, were introduced into the market in both February and kind climaxed in March. That activity suffered significantly. As you look forward into April, we believe that where we started the year and where we expected that activity to be absent that significant uncertainty is reasonable.

25m 54s

Okay. All right. That's good color. Thanks. And and looking at the the pressure on balances in energy and healthcare, Is that dynamic continuing through second? Should we assume that that's just sort of a in this current environment that that's going to be a a consistent pressure and going back to like the loan yields that we should think that incremental loan yields are under pressure from here?

26m 21s

I don't think so. I think calling the absolute bottom on the energy loans is difficult, but I think we feel pretty confident that if we're not there, we're close to there. I don't think that's going to be a headwind for us. To the extent it has been the last two quarters going forward. Actually, if you look, it's always dangerous to talk about April results, but we're up in all categories really. In April across the board. So early trends there are very positive. But with respect to both Healthcare and Energy, I don't think you're going to see the headwind there in the next three quarters like you saw in the last two quarters. But understand, it's a difficult one for us to forecast great accuracy as well just given the market dynamics and what the shape of the curve is at any point in time. And particularly in the M and A space. Acquisitions mergers and acquisitions have played a significant role there. We do see that slowing down bit. Which is part of the optimism about the lack of headwind going forward.

27m 25s

Okay.

27m 26s

Great. And then just finally for me, when we look at the provision guide, with sort of the dynamic of the loan growth guide, should we assume that you're going to be growing the ACL as a ratio over the course of the year? And I guess what are some of the the dynamics you're using in terms of qualitative overlay and potentially a more risk or a more adverse scenario?

27m 52s

Yes.

27m 52s

So Jared, so we would we would not expect to need to grow the coverage ratio over the course of the year. You know, if you look at how we closed out the first quarter, The increase that we saw in credit quality on our portfolio combined with where the actual balance levels came. So when we ran our our reserve calc, actually suggested that, that we could do a reserve release. However, when we looked at, you know, current circumstances, that just didn't make any sense to us. So so, you know, we obviously provided at zero, but that just gives you a sense for the fact that there is some you know, judgmental addition in there on top of what it would normally be.

28m 46s

Thank you. And your next question comes from the line of Jon Arfstrom with RBC Capital Markets. Jon? Please go ahead.

28m 56s

Thanks. Good afternoon.

28m 59s

Hey.

29m 1s

Hello, John. Hey.

29m 4s

Just, I wanted to ask a little bit about the loan growth outlook But can you give us an update as to what you're hearing on pipelines in general? And then, Stacy, maybe give us an update on the expected size of the mortgage finance business, maybe by the end of the year? Yes. So pipelines are good. We actually track our our pipelines through Salesforce. Marty and I review those every month.

29m 33s

And and those are very strong. I think that the color that's hard to weave in that is how will borrower uncertainty play out. Will the deal that they've agreed to, will they go ahead and close that? In the face of a less certain economic environment. I think that's the piece that's hard for us put our finger on exactly. And so when Marty alluded to the loan growth guidance, he acknowledged that there's some uncertainty around that. But based on what we know today, we still feel confident in that. And so I'm not not worried about the pipeline, but I feel really good about where we're at there and how we're building those and how we're growing those. The piece that's the wildcard that we we can't really discern well is how will the borrower response be? Will they advance on the line of credit? Will they go ahead with the new piece of equipment or the whatever is driving the capital need I think that's a harder one for us deal with with great certainty today because as we've learned, what are the conditions today, they could be very different tomorrow. And so we're very hesitant to kind of extrapolate kind of what happens in late first quarter, early second quarter and say, well, that's going to be the conditions for the rest of the year.

30m 55s

It's likely to change.

30m 58s

In some way, shape or form. And so we felt more comfortable kind of sticking with what we knew, which was the pipelines that we have. On the mortgage warehouse side, I'm not ready to give volume estimates there yet when we haven't even made our first loan. But it did give us confidence to reaffirm the kind of point to point loan guidance we provided in our forward looking guidance. And so we still feel very good about that. Frankly, are excited about the team that we've put on on board and as well as their ability to attract business. Like we said, this is this fits so well with the rest of our businesses with we have the core mortgage business, we've got the mortgage hedging the pipeline hedging, we've got the structured finance business. And now we're going to have the warehouse business here as well. And so really, integrates well into the 500 plus mortgage finance companies that are already our customers today. And so that's not going to just be about loans. It's also going to be about deposits as well. So we're probably more excited about that than we were even ninety days ago.

32m 9s

So it just helps us feel more confident in believing that we'll achieve our $0.00 to $0.1 guidance that we provided.

32m 17s

And John, just to be clear, we've got leadership in place. We've got operations folks, credit folks, and producers all in place [indiscernible] So we have we have everything we need to to to begin.

32m 31s

Okay. Good. That's helpful. And then just, Scott, one follow-up for you. The trading NII line is that is that unusual? I mean, it looks like it's a big jump. But at the same time, you guys are flagging maybe a steeper curve as a driver Yes. And that that is the you know, why that mix shift as we you know, the the curves return to steepness and an actual yield curve last year While we talked about that in the fourth quarter in particular, as we do have steepness to the curve, that is a more traditional mix of the revenues. As opposed to the flat or inverted curve we experienced for twenty four, twenty six months, So we don't expect that to be a onetime occurrence. We think that mix between fees and NII are more reflective of that business in a normal shaped curve. And John, it's Marty. I would add on the bottom of Page nine on the slides, it's to understand the the trends in the business, it's better to look at that total trading revenue line at the very bottom and that gives you a much more muted level of change there. And that's really the insightful way think about the trends in that business unit.

33m 52s

And recognizing that our trading business is largely MBS.

34m

In that category. And then municipals. So there is no equities increased volume due to chaotic markets offset to that. So ours is going to reflect that curve and the MBS activity overall. Most predominantly.

34m 20s

Yep.

34m 21s

Okay.

34m 21s

Yeah. I was just curious if we get a couple of cuts and we have a steeper curve if if in aggregate those numbers can move higher.

34m 28s

That's that's kind They can.

34m 30s

Yeah. You could see that shift go even further if if what you just described laid out.

34m 36s

But the total revenue of the business would remain unaffected.

34m 40s

And historically, when we had that steeper curve, more traditional curve, prior to the flattening and inversion that was the composition of our business. And it was more predominantly NII than fees than where it is at the end of this quarter.

35m

Okay. Okay. Very helpful. Thanks, guys.

35m 5s

And your next question comes from the line of Peter Winter with D. A. Davidson. Peter, please go ahead. Thanks. Good afternoon. Just had two questions. Just digging a little bit deeper into the outlook.

35m 18s

First, you didn't lower the expense forecast given somewhat of a weaker fee income outlook. But can you talk about your flexibility to manage expenses if revenues come in weaker?

35m 33s

Yes. So we've got a little bit of flexibility kind of a couple different areas. So number one, as you know, Peter, you've got a couple of lines where the the compensation is heavily variable and so both in the trading and investment banking and mortgage areas, you know, that'll just naturally ebb and flow with the revenue streams. And then number two, you know we're always looking for efficiencies throughout our business. That's just a constant look for us. And, you know, so that's that's something that you know, we can find more things from time to time. And then you know, third, you know, most of our expense growth is really about strategic initiatives and investments in our future, whether that's technology, etcetera. And, you know, by and large, those are those are decisions that we make thinking through through a long term lens, and we're convicted about doing and largely make those on their merits. If the world changes and IRRs for those investments change as a result, that's something you might delay just based on the economics of it and you know, something might be worth doing, later. But, but largely, those are made through the lens of of the decision that that have a long term, returns of that investment.

36m 53s

So that kinda gives you a a sense for how we think about the expense base.

36m 56s

Yes. Let me clarify, Peter. I think really two things. One, obviously, the trading revenue side, there's a lot of variability with that expense. To the extent that the revenue is there. The expenses will be there and to the extent that it's not in that associated expense will decline. But I think I would be careful to softness in fee revenue. I think softness in trading But if you look at mortgage banking, yep, year over year 4.5% hedging fees up 33% year over year brokerage fees up 6% year over year fiduciary and asset management fees up 10% year over year Transaction card up over 6% year over year. So the core fee businesses are humming. You're really talking about one category, trading fees that were soft this quarter, and they were soft because of really difficult macro environment. And from my perspective in trading, the risks were very asymmetric. This quarter. I'm really proud of the team and how we work through that and the manner that we did with spreads moving wider and then contracting and moving in ways that aren't historical norms with treasuries. Our risk management team did a fantastic job keeping that portfolio well hedged and managing through that.

38m 10s

In a very positive way. And so the trading revenue was clearly volatile and under There's no doubt about that. But the rest of the fee businesses are really performing well. And very proud of that and don't want to get don't want that to get lost in the noise of the trading revenue.

38m 28s

No. I appreciate that color. Just can you talk maybe about the outlook for deposit growth and these talk about maybe further opportunities to lower the cost deposit costs and funding costs if the Fed doesn't cut rates. And how you think the deposit beta trends from here?

38m 50s

Yes. So Peter, we're really proud of the activity that we did during the quarter on deposit pricing. So we had a 75% deposit beta for q one which is a great result.

39m 4s

And kudos to our teams for managing that well. I think when you look at it's probably smarter to look at the cumulative, interest bearing liability beta that [indiscernible] And our cumulative interest bearing beta is 74, which is right on top of our cycle cumulative up beta. Just almost within a percentage point. So we're very happy about that. And we do think that given the strong loan to deposit ratio we have, it's really one of the strongest out there, that gives us the ability to to continue to work on deposit pricing over time. In fact, we did some of that at the end of the first quarter, and we'll see some benefit rolling into Q3 as a result. And you know, we'll we'll continue to work on that throughout the course of the year. So, you can do some of that without Fed moves. We'll just look at the the competitive environment. But certainly makes it easier if you do get some Fed moves.

40m 8s

And just could you just mention how you doing how the outlook on deposit growth?

40m 14s

Yes. So we do expect deposits to grow throughout the rest of the year.

40m 18s

But given the loan to deposit ratio that we have, if we were to turn the dial some on deposit pricing and we saw a different trend line there. That would ultimately be fine for us because of how how luxurious that level of loan to deposit ratio is And, you know, at the end of the day, doing so would be something that would be net interest income accretive.

40m 45s

Got it.

40m 46s

Thanks, Marty.

40m 51s

And your next question comes from the line of Michael Rose with Raymond James. Michael, please go ahead.

40m 57s

Hey, good afternoon. Thanks for taking my questions.

41m

Just wanted to start going back to the energy portfolio. You just help us better appreciate, what's going on with energy prices now and if they were to continue to fall?

41m 12s

Versus what happened during the the energy downturn from from late fourteen through through '17? I know the percentage is lower. Energy companies are generally operating with [indiscernible] Which is a big difference now versus then. But wouldn't there be some further delevering if energy prices remained under pressure, if we did move closer to recession? Just trying to better appreciate what those balances could look like over time, understanding that it is a bigger portion for you versus many others? Thanks.

41m 41s

Yes. Good question. A lot of lot of differences between 2014 and today. I think the biggest one is leverage. I mean leverage in the [indiscernible] core portfolio was probably in excess of three times, somewhere between three three point five times. In 2014. Today, the leverage in our energy production portfolio is less than one times. Part of the problem we have getting outstanding is we've had great commitment growth. The team has done a great job there. The borrowers are just not using the leverage today. And so that singularly is the biggest difference The other one is hedging as a risk management tool is very different today. And so in 2014, borrowers were were largely under hedged and that's not an issue today at all. So I don't know that lower commodity prices for the short term here are going to have a lot of headwind on [indiscernible] We do a lot of stress testing. We've stressed oil down to $44 which is really the stress point today. Don't see a lot of loss there. And really, that's because of the extensive amount of hedging [indiscernible] the very low leverage. So, our average leverage is less than one times on energy production and less than 1.5 times on midstream.

43m 3s

And so those are very low levels of leverage from where we are today.

43m 9s

Very helpful, Stacy. Appreciate it. And maybe one for for Marty. I understand that you you have to cuts baked into your forecast. I don't think it's the biggest driver, but can you just give a sense for if we did assume the forward curve, which I think is around four cuts or what the impact on NII could be if we did get no cuts.

43m 32s

Thanks.

43m 33s

Yeah. So either way, it would not make much of a difference and certainly not up to make us think about changing guidance. So basically, additional cut or two would be a little bit helpful in in the, you know, the later part of the year, but but but nothing material. And by the same token, you know, if we don't get those rate cuts, you know, that would that would be, you know, virtually no impact to revenue. Now you'd see a little bit of a different shift between trading fees and trading NII, but total revenue would be basically unchanged.

44m 8s

Got it. Thanks for taking my questions.

44m 13s

And your next question comes from the line of Woody Lay with KBW. Woody, please go ahead.

44m 20s

Hey, thanks for taking my question. One of the start with the loan growth guide and just a follow-up there. So was the addition of the mortgage finance vertical, was that embedded in the loan growth guidance the last quarter or is adding that vertical sort of helping bridge the gap, after the loan shrinkage this quarter?

44m 43s

Yeah. Woody, we did not have that in the guide we had prior quarter. We weren't far enough along. To feel like we wanted to put it in. So we did put it in this quarter just given that we've got all the all the groundwork laid. We feel very confident about where we are So felt good about putting that in.

45m 3s

Got it.

45m 5s

And then I know you're not ready to sort of guide where it bounces could be by the end of the year.

45m 10s

But, I mean, longer term, how do you sort of think about the concentration of of mortgage warehouse in the one portfolio?

45m 19s

Yes. I mean, we're not concerned with letting it grow. I mean, we're going [indiscernible] walk before we run here. But we understand this portfolio can grow and And frankly, for us, it provides a diversification benefit across the broader portfolio. The risk in mortgage finance is less credit risk and more about operating risk. We like that aspect of it and we like the full relationship we're going to have both on the depository side and on the hedging side and structured finance side. So for us, it kind of completes the vertical in many respects for us, and it has really limited credit risk and then provides strong diversification benefit for the rest of the loan portfolio. So we expect to see it grow and be a meaningful number we're sitting here, say, end of twenty twenty six. I expect it to be a meaningful number for BOKF. Alright.

46m 12s

Got it. And then last for me. Capital remains strong and, you know, the stock price is sustainable.

46m 18s

Pullback here just alongside the broader market. How do you weigh buybacks in the current tape given all the uncertainty on the macro side? Yes. So as you know, we do have a very strong capital position and are sitting on some excess capital. And as we look at the alternatives available to us, we do expect to be active share repurchases in the second quarter.

46m 43s

Alright. Thanks for taking my question.

46m 46s

Thank you. And our final question comes from the line of Matt Olney with Stephens. Matt, please go ahead.

46m 55s

Hey. Thanks, guys. Just a few cleanups here. Stacy, you mentioned that energy customers already have lots of hedging on future production. In the past, we've seen increased activity which is volatility to commodity price But it sounds like maybe we should not anticipate this given the existing customers already are fully hedged.

47m 19s

Yes. But customers are well hedged and because leverage is low hedge coverage may not be at the same level it was they even a year ago. But that hedge coverage is like an accordion. It grows as the leverage grows. And so with leverage less than one times, you're going to have I think, like 55% of our borrowers are hedged out the next twelve months or so. And that may seem a little bit low, but because the leverage is so low, we're not requiring the hedging when their leverage is that low. But that that would grow to the extent that their leverage profile changed as well.

47m 54s

I guess, that's a different way, Stacy. With lower commodity price more recently, that may not represent a catalyst to see increased hedging activity. For you guys. Yes. That's a fair price.

48m 6s

There's we had a really strong hedging activity in the first first quarter hedging quarter in the first quarter. Those guys will are opportunistic and they'll dip in and dip out hedging when they see the opportunities. Obviously, oil is under pressure. And so this may not be the quarter that people want hedge more oil. There's other ways they can do that with and still have a floor put a floor in without necessarily having a top end. So it can change, but you're right. At $60 oil, there's going be less hedging activity in all likelihood during the second quarter.

48m 42s

Okay. Perfect.

48m 43s

And then Marty made another question on the trading interest revenue. Asked a little bit differently. I think you disclosed in the press release that the trading spread was around 98 bps in the first quarter. Does the full year guidance assume that we just maintain these levels around 98 bps or with the May and September cut could we see that spread actually improve? Yes. So we do within the guidance, we expect that the spread improves some as you get those rate cuts later in the year. The right way to think about it.

49m 22s

Okay. Great. Thank you.

49m 27s

That concludes our question and answer session. I will now hand it over to Stacy for closing remarks. Stacy?

49m 35s

You, everyone, for joining our discussion today. Our results this quarter are a testament to the strength and adaptability of our organization and our ability to operate successfully in any market cycle.

49m 44s

Cycle.

49m 44s

Our exacting focus on our risk management framework and diverse business model work together and are core to our success. Credit quality remains excellent. We've got a strong loan pipeline and growing relationships. Net interest income is expanding and our fee income businesses continue to work as design. Appreciate your interest in BOK Financial and your willingness to spend time with us this afternoon. Please reach out to Heather King if you have any questions at h. King bokf dot com.

50m 11s

That concludes our conference call. You may now disconnect.

Key Insights

BOK Financial reported Q1 2025 earnings of $119.8 million, or $1.86 per diluted share, with strong capital levels (TCE at 9.5% and CET1 at 13.3%) and a low loan-to-deposit ratio of 62%, positioning the company well for future growth and market volatility.
Net interest income increased by $3.2 million with net interest margin expanding for the third consecutive quarter; trading-related net interest income grew as fee income declined due to lower trading volumes and compressed spreads, but early Q2 trends show a rebound in trading activity.
Loan portfolio contracted in Q1, mainly due to a 12.1% decrease in energy loans and a 4.5% decrease in healthcare loans, while commercial real estate loans grew 2.1% and core C&I loans remained stable; management expects energy and healthcare headwinds to subside and anticipates further CRE growth and the launch of a mortgage finance business in late Q3.
Credit quality remains exceptional with nonperforming assets at 33 basis points, minimal net charge-offs (averaging 4 bps over the last 12 months), and a healthy allowance for credit losses at 1.4% of outstanding loans; management expects charge-offs to remain below historical norms.
Full-year 2025 guidance assumes continued loan growth (including from the new mortgage finance vertical), stable or improving net interest income (assuming two 25 bps Fed rate cuts), and well-controlled expenses; management plans to be active in share repurchases in Q2 and expects deposit growth to continue, with flexibility to manage expenses if revenues weaken.

Recent Transcripts

BOK Financial delivered strong Q1 results with robust capital, expanding NIM, and exceptional credit quality.

BOK Financial delivered strong Q4 and near-record full-year 2024 earnings with robust credit quality and loan growth.

Jan 21

Q4 2024

Earnings

$523.6M (FY), $136.2M (Q4)

Loan Growth

Core C&I +8.1% YoY, Texas +9.8%

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$1.9B	$1.8B	$1.8B	$2B	$2.6B
Cost of Revenue	$977M	$883M	$776M	$925M	$12M
Gross Profit	$911M	$948M	$1B	$1B	$2.6B
Gross Profit %	48%	52%	57%	53%	100%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$1.9B

$1.8B

$2B

$2.6B

Cost of Revenue

$977M

$883M

$776M

$925M

$12M

Gross Profit

$911M

$948M

$1B

$2.6B

Gross Profit %

48%

52%

57%

53%

100%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$435M	$616M	$520M	$526M	$524M
Dep. & Amort.	$99M	$102M	$108M	$110M	$0
Def. Tax	$38M	-$189M	$0	$0	$0
Stock Comp.	$16M	$9.8M	$12M	$16M	$23M
Chg. in WC	-$1.1B	-$4.3B	$4.4B	-$307M	$0

2020

2021

2022

2023

2024

Net Income

$435M

$616M

$520M

$526M

$524M

Dep. & Amort.

$99M

$102M

$108M

$110M

Def. Tax

$38M

-$189M

Stock Comp.

$16M

$9.8M

$12M

$16M

$23M

Chg. in WC

-$1.1B

-$4.3B

$4.4B

-$307M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$1.2B	$2.8B	$1.4B	$1.3B	$1.4B
ST Investments	$13B	$13B	$11B	$12B	$13B
Cash & ST Inv.	$14B	$16B	$13B	$204M	$276M
Receivables	$0	$0	$0	$710M	$286M
Inventory	-$6.3B	-$12B	-$6.2B	$0	$0

2020

2021

2022

2023

2024

Cash

$1.2B

$2.8B

$1.4B

$1.3B

$1.4B

ST Investments

$13B

$11B

$12B

$13B

Cash & ST Inv.

$14B

$16B

$13B

$204M

$276M

Receivables

$710M

$286M

Inventory

-$6.3B

-$12B

-$6.2B

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Apr 21, 2025

Reported Revenue

500.4M

Miss -3.84%

Avg 1d Change

1.39%

Report Period

Q1 2025

Reported EPS

1.9

Miss -7.46%

Implied Move 1d

7.49%

Transcript

9m 50s

Welcome to BOK Financial Corporation's First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute. To prevent any background noise.

9m 59s

10m 26s

11m 4s

Thank you, Heather.

11m 5s

11m 27s

11m 51s

13m 8s

13m 31s

Specifically in our trading business.

13m 33s

13m 59s

15m 23s

We expect payoff activity especially related to refinances to moderate and pipelines to remain robust. Our commercial real estate business increased 2.1% quarter over quarter.

15m 35s

16m 10s

17m 29s

18m 50s

19m 43s

20m 21s

21m 15s

21m 37s

22m 13s

22m 37s

Our net interest income expectations remain unchanged.

22m 41s

23m 6s

23m 28s

We will now begin the question and answer session.

23m 41s

And your first question comes from the line of Jared Shaw with Barclays. Jared? Please go ahead. Hi, thanks a lot. Good afternoon. Hey, Jared. Welcome.

23m 52s

Thanks. Thanks. Good to be back on the call.

23m 56s

25m 16s

25m 54s

26m 21s

27m 25s

Okay.

27m 26s

27m 52s

Yes.

27m 52s

28m 46s

Thank you. And your next question comes from the line of Jon Arfstrom with RBC Capital Markets. Jon? Please go ahead.

28m 56s

Thanks. Good afternoon.

28m 59s

Hey.

29m 1s

Hello, John. Hey.

29m 4s

29m 33s

30m 55s

It's likely to change.

30m 58s

32m 9s

So it just helps us feel more confident in believing that we'll achieve our $0.00 to $0.1 guidance that we provided.

32m 17s

And John, just to be clear, we've got leadership in place. We've got operations folks, credit folks, and producers all in place [indiscernible] So we have we have everything we need to to to begin.

32m 31s

33m 52s

And recognizing that our trading business is largely MBS.

34m

34m 20s

Yep.

34m 21s

Okay.

34m 21s

Yeah. I was just curious if we get a couple of cuts and we have a steeper curve if if in aggregate those numbers can move higher.

34m 28s

That's that's kind They can.

34m 30s

Yeah. You could see that shift go even further if if what you just described laid out.

34m 36s

But the total revenue of the business would remain unaffected.

34m 40s

35m

Okay. Okay. Very helpful. Thanks, guys.

35m 5s

35m 18s

First, you didn't lower the expense forecast given somewhat of a weaker fee income outlook. But can you talk about your flexibility to manage expenses if revenues come in weaker?

35m 33s

36m 53s

So that kinda gives you a a sense for how we think about the expense base.

36m 56s

38m 10s

38m 28s

38m 50s

Yes. So Peter, we're really proud of the activity that we did during the quarter on deposit pricing. So we had a 75% deposit beta for q one which is a great result.

39m 4s

40m 8s

And just could you just mention how you doing how the outlook on deposit growth?

40m 14s

Yes. So we do expect deposits to grow throughout the rest of the year.

40m 18s

40m 45s

Got it.

40m 46s

Thanks, Marty.

40m 51s

And your next question comes from the line of Michael Rose with Raymond James. Michael, please go ahead.

40m 57s

Hey, good afternoon. Thanks for taking my questions.

41m

Just wanted to start going back to the energy portfolio. You just help us better appreciate, what's going on with energy prices now and if they were to continue to fall?

41m 12s

41m 41s

43m 3s

And so those are very low levels of leverage from where we are today.

43m 9s

43m 32s

Thanks.

43m 33s

44m 8s

Got it. Thanks for taking my questions.

44m 13s

And your next question comes from the line of Woody Lay with KBW. Woody, please go ahead.

44m 20s

44m 43s

45m 3s

Got it.

45m 5s

And then I know you're not ready to sort of guide where it bounces could be by the end of the year.

45m 10s

But, I mean, longer term, how do you sort of think about the concentration of of mortgage warehouse in the one portfolio?

45m 19s

46m 12s

Got it. And then last for me. Capital remains strong and, you know, the stock price is sustainable.

46m 18s

46m 43s

Alright. Thanks for taking my question.

46m 46s

Thank you. And our final question comes from the line of Matt Olney with Stephens. Matt, please go ahead.

46m 55s

47m 19s

47m 54s

I guess, that's a different way, Stacy. With lower commodity price more recently, that may not represent a catalyst to see increased hedging activity. For you guys. Yes. That's a fair price.

48m 6s

48m 42s

Okay. Perfect.

48m 43s

49m 22s

Okay. Great. Thank you.

49m 27s

That concludes our question and answer session. I will now hand it over to Stacy for closing remarks. Stacy?

49m 35s

49m 44s

Cycle.

49m 44s

50m 11s

That concludes our conference call. You may now disconnect.

Key Insights

BOK Financial reported Q1 2025 earnings of $119.8 million, or $1.86 per diluted share, with strong capital levels (TCE at 9.5% and CET1 at 13.3%) and a low loan-to-deposit ratio of 62%, positioning the company well for future growth and market volatility.
Net interest income increased by $3.2 million with net interest margin expanding for the third consecutive quarter; trading-related net interest income grew as fee income declined due to lower trading volumes and compressed spreads, but early Q2 trends show a rebound in trading activity.
Loan portfolio contracted in Q1, mainly due to a 12.1% decrease in energy loans and a 4.5% decrease in healthcare loans, while commercial real estate loans grew 2.1% and core C&I loans remained stable; management expects energy and healthcare headwinds to subside and anticipates further CRE growth and the launch of a mortgage finance business in late Q3.
Credit quality remains exceptional with nonperforming assets at 33 basis points, minimal net charge-offs (averaging 4 bps over the last 12 months), and a healthy allowance for credit losses at 1.4% of outstanding loans; management expects charge-offs to remain below historical norms.
Full-year 2025 guidance assumes continued loan growth (including from the new mortgage finance vertical), stable or improving net interest income (assuming two 25 bps Fed rate cuts), and well-controlled expenses; management plans to be active in share repurchases in Q2 and expects deposit growth to continue, with flexibility to manage expenses if revenues weaken.

BOK Financial Corporation Price & Performance (BOKF)

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