BOK Financial Corporation

What they do

BOK Financial operates three principal segments: Commercial Banking (lending, treasury and cash management, customer risk management, and the TransFund electronic funds network); Consumer Banking (retail lending and deposits, small business banking through the branch network, and all mortgage origination and servicing); and Wealth Management (brokerage and trading, primarily providing liquidity to mortgage markets through U.S. government agency mortgage-backed securities and related derivative contracts). BOKF, NA is the wholly owned subsidiary bank and operates banking divisions under the Bank of Albuquerque, Bank of Oklahoma, Bank of Texas, and BOK Financial brands. Other subsidiaries include BOK Financial Securities, Inc., a broker/dealer, and BOK Financial Private Wealth, Inc., an investment adviser.

Revenue drivers

• Net interest income — Totaled $1.3 billion for full-year 2025, up $116.6 million year over year, driven by a funding shift from wholesale borrowings to interest-bearing deposits and improving AFS securities yields; net interest margin was 2.87% for 2025 versus 2.65% for 2024.
• Fees and commissions — Was $800.7 million in 2025, essentially flat year over year; brokerage and trading revenue fell $58.4 million due to a shift from trading revenue to net interest income on trading securities, partly offset by a $26.3 million increase in fiduciary and asset management revenue and higher transaction card and deposit service charge revenue.
• Wealth Management / fiduciary and asset management — A strategic focus area generating trust fees that grew on higher market valuations and client relationship growth; the company reported record fiduciary and asset management revenue in Q2 2026 and services approximately $127 billion of assets under management or administration.
• Other gains, net — $43.8 million in 2025, including a $23.5 million pre-tax gain on the sale of a merchant banking investment, versus $79.7 million in 2024 which included a $56.9 million Visa C share gain.

Recent performance

Second quarter 2026 net income was $176.5 million, or $2.92 per diluted share, compared to $155.8 million, or $2.58, in the prior-year quarter; excluding the Visa B share exchange gain and AFS repositioning loss, net income would have been $156.5 million, or $2.59 per share. Net interest income rose $9.3 million to $351.8 million with net interest margin of 2.91%, up from 2.90% in the prior quarter. Period-end loans grew $896 million to $27.1 billion on broad-based growth, which the CEO described as the highest quarterly loan production in company history, with loans up 11.5% from a year earlier. Deposits increased $1.2 billion to $39.9 billion and the loan-to-deposit ratio held at 68%. Credit quality remained stable with nonperforming assets of $63 million (0.23% of loans and repossessed assets) and net charge-offs of $500 thousand, or 0.01% of average loans annualized.

Strategy

The stated objective is to emphasize growth in long-term value by building on leadership in Oklahoma and expanding into high-growth contiguous markets, operating primarily in Tulsa, Oklahoma City, Dallas, Fort Worth, Houston, San Antonio, Albuquerque, Denver, Phoenix, and Kansas City. The acquisition strategy targets fairly priced quality organizations with demonstrated growth that supplement principal lines of business, supplemented by hiring talent, adding locations, and broadening product offerings. The operating philosophy combines local decision-making in each market with common company standards. Wealth management remains a strategic focus, and the company continues to provide liquidity to mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivatives.

Risks

• Execution of operating strategy — The company states it cannot ensure its operating strategy will succeed, with factors including asset quality deterioration, inability to control non-interest expenses, inability to increase non-interest income, and decreases in net interest margins.
• Regional economic concentration — Operations are concentrated in the southwest United States and core markets, leaving results exposed to deterioration in general economic conditions in those specific geographies.
• Competition from larger institutions — Large national financial institutions have substantial capital, technology, and marketing resources and may have greater access to capital at lower cost, which the company says may adversely affect its ability to compete.
• Systems and regulatory exposure — The company cites a breach in security or inoperability of its own or third-party providers' systems and adverse regulatory developments as factors that could harm financial condition and results.

Outlook

Management did not provide explicit forward earnings guidance in the materials provided. The 2025 10-K notes the Federal Reserve reduced the federal funds rate by 75 basis points over the last four months of 2025 to balance inflation progress against emerging labor-market risks, with unemployment at 4.4% for December 2025 and consumer spending stable but constrained. CEO Stacy Kymes cited the company's geographic footprint as continuing to create opportunities to grow faster than peers while maintaining a disciplined approach.