BOK Financial | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 870.1 M

Revenue: As of FY2025 Q4, the actual value is USD 870.1 M, beating the estimate of USD 549.37 M.EPS: As of FY2025 Q4, the actual value is USD 2.89, beating the estimate of USD 2.1675.EBIT: As of FY2025 Q4, the actual value is USD -116.77 M.Net IncomeBOK Financial Corporation reported annual earnings of $578 million for the year ended December 31, 2025, compared to $523.6 million for the prior year . For the fourth quarter of 2025, the company reported net income of $177 million, or $2.89 per diluted share, which was a record high . This compares to $140.9 million, or $2.22 per diluted share, in the prior quarter and $136.2 million, or $2.12 per diluted share, in the fourth quarter of 2024 . Excluding a gain on a merchant banking investment sale and an FDIC special assessment benefit, net income for the fourth quarter of 2025 would have been $152.1 million, or $2.48 per diluted share . Net income before taxes was $228.5 million in Q4 2025, $176.6 million in Q3 2025, and $175.4 million in Q4 2024 .Net Interest Income and MarginNet interest income for the fourth quarter of 2025 totaled $345.3 million, an increase of $7.6 million, representing a 2.3% sequential increase and a 10.3% year-over-year increase . The net interest margin expanded 7 basis points sequentially to 2.98%, and 23 basis points year-over-year . The core net interest margin, excluding trading activities, increased 6 basis points to 3.22% . For the full year 2025, net interest income totaled $1.3 billion, an increase of $116.6 million, with a net interest margin of 2.87% compared to 2.65% in the prior year . The yield on loans was 6.48% in Q4 2025, a -22 basis point sequential decrease and -53 basis point year-over-year decrease . The cost of interest-bearing deposits was 2.91%, a -23 basis point sequential decrease and -57 basis point year-over-year decrease .Fees & Commissions RevenueFees and commissions revenue for the fourth quarter of 2025 was $214.9 million, up $10.4 million, reflecting a 5.1% sequential increase and a 3.8% year-over-year increase . This growth was primarily led by increases in trading revenue, fiduciary and asset management revenue, and transaction card revenue . Brokerage and trading revenue increased $4.1 million to $47.3 million, while fiduciary and asset management revenue was up $4.5 million, and transaction card revenue increased $2.1 million . For the full year 2025, fees and commissions revenue was consistent with the prior year at $800.7 million .Specific fee income for Q4 2025 included: Markets & Securities at $66.3 million (5.3% sequential increase, -9.9% year-over-year decrease), Fiduciary & Asset Management at $68.3 million (7.0% sequential increase, 12.8% year-over-year increase), Transaction Card at $31.6 million (7.1% sequential increase, 14.2% year-over-year increase), Deposit Service Charges & Fees at $32.0 million (0.4% sequential increase, 6.7% year-over-year increase), and Other Revenue at $16.6 million (2.5% sequential increase, 10.4% year-over-year increase) . Trading Fees were $20.9 million, a $5.4 million sequential increase, while Investment Banking Fees were $7.8 million, a -$4.1 million sequential decrease .Operating ExpenseOperating expense for the fourth quarter of 2025 decreased $8.7 million to $361.1 million, representing a -2.4% sequential decrease and a 3.9% year-over-year increase . Excluding the FDIC special assessment benefit, operating expense was relatively unchanged . Personnel expense decreased $3.6 million, primarily due to seasonally lower employee benefit costs, reaching $222.7 million (-1.6% sequential decrease, 5.7% year-over-year increase) . Non-personnel expense decreased $5.1 million to $138.3 million, a -3.6% sequential decrease and 1.0% year-over-year increase, driven by a $9.5 million benefit related to the FDIC special assessment . For the full year 2025, operating expense increased $67.1 million to $1.4 billion . The efficiency ratio was 60.7% in Q4 2025, improving from 66.7% in Q3 2025 and 65.6% in Q4 2024 .LoansPeriod-end loans grew by $786 million to $25.7 billion in the fourth quarter of 2025, primarily in the commercial loan portfolio, representing a 3.2% sequential increase and a 6.4% year-over-year increase . Average outstanding loan balances were $25.2 billion, a $416 million increase, reflecting a 1.7% sequential increase and a 5.1% year-over-year increase . Outstanding commercial loan balances increased $768 million . Commercial real estate loan balances decreased $81 million to $5.7 billion, while loans to individuals were up $99 million to $4.7 billion .As of December 31, 2025, the loan portfolio included: Total Commercial Loans at $15,281.1 million (5.3% sequential increase, 1.7% year-over-year increase), Total Commercial Real Estate at $5,672.0 million (-1.4% sequential decrease, 12.1% year-over-year increase), and Loans to individuals at $4,698.4 million (2.1% sequential increase, 16.7% year-over-year increase) .Credit QualityNonperforming assets remained stable at $75 million, or 0.29% of outstanding loans and repossessed assets . Excluding U.S. government guaranteed loans, non-performing assets totaled $66 million or 0.26% of outstanding loans and repossessed assets . Net charge-offs for the fourth quarter were $1.4 million, or 0.02% of average loans on an annualized basis . No provision for expected credit losses was necessary for the fourth quarter of 2025, compared to $2.0 million in Q3 2025 and $0.0 million in Q4 2024 . The combined allowance for loan losses and accrual for off-balance sheet credit risk was $327 million, or 1.28% of outstanding loans at quarter end . Full year 2025 net charge-offs were $6.7 million, or 0.03% of average loans, compared to $12.9 million, or 0.05% of average loans in 2024 .DepositsPeriod-end deposits grew by $935 million to $39.4 billion, representing a 2.4% sequential increase and a 3.3% year-over-year increase . Average deposits increased $1.5 billion to $40.0 billion, reflecting a 3.9% sequential increase and a 5.7% year-over-year increase . Average interest-bearing deposits increased $1.4 billion, and average demand deposits increased by $114 million . The loan to deposit ratio was 65% .CapitalThe tangible common equity ratio was 9.46% compared to 10.06% at September 30, 2025 . The Tier 1 capital ratio was 12.90%, common equity Tier 1 capital ratio was 12.89%, and total capital ratio was 14.77% . BOK Financial Corporation repurchased 2,617,414 shares of common stock at an average price paid of $107.99 per share .Segment Revenue and Operational Metrics (Fourth Quarter 2025 vs. Third Quarter 2025)Commercial Banking:Net income before taxes increased $24.2 million to $164.0 million .Combined net interest income and fee revenue increased $5.4 million .Net loans charged-off decreased $1.7 million to $929 thousand .Average loans increased $249 million (1%) to $20.5 billion .Average deposits grew $325 million (2%) to $18.5 billion .Consumer Banking:Net income before taxes was $15.1 million, remaining relatively consistent .Combined net interest income and fee revenue decreased $1.8 million to $94.8 million .Average loans increased $83 million (3%) to $2.5 billion .Average deposits were consistent at $8.3 billion .Wealth Management:Net income before taxes increased $6.1 million to $42.7 million .Combined net interest income and fee revenue increased $5.0 million to $160.2 million .Average loans increased $40 million (2%) to $2.4 billion .Average deposits were largely unchanged at $10.7 billion .Assets under management or administration were $126.6 billion, an increase of $3.9 billion (3%) . This also represents a 3.2% sequential increase and a 10.5% year-over-year increase . Fiduciary Assets were $77.0 billion, a 4.3% sequential increase and a 13.3% year-over-year increase .Revenue Composition (as of December 31, 2025)Net Interest Income represented 62% of revenue, Trading & Brokerage 8%, Fiduciary & Asset Management 12%, Transaction Card 6%, Deposit Service Charges 6%, Mortgage Banking 3%, and Other Revenue 3% .Notable Items (Q4 2025)BOK Financial Corporation recognized a pre-tax gain of $23.5 million from the disposition of a merchant banking investment . An expense credit of $9.5 million was recorded due to an updated FDIC special assessment and assessment rate . These items resulted in a total pre-tax impact of $33.0 million, an after-tax impact of $25.2 million, and an EPS impact of $0.41 .Outlook / GuidanceBOK Financial Corporation anticipates upper single-digit growth for period-end loans, projecting to reach $25.7 billion in 2025 . Net interest income is expected to be between $1.44 billion and $1.48 billion, assuming two rate cuts later in the year . Fees and commissions are forecast to range from $800 million to $825 million, with total revenue showing a mid-single-digit growth rate, while expenses are projected for low single-digit growth, leading to an efficiency ratio of 63% to 64% . The provision expense is estimated between $25 million and $45 million, reflecting a strong credit outlook and gradual normalization of credit performance .