BOK Financial third-quarter profit falls to $159.9 million, or $2.64 per share

BOK Financial Corporation (BOKF) said Monday it earned $159.9 million, or $2.64 per diluted share, in the third quarter, a regulatory filing showed.

The company, a regional financial services firm headquartered in Tulsa, Oklahoma, reported the results in a press release attached to its 8-K.

Net income fell from $176.5 million, or $2.92 per diluted share, in the second quarter. It rose from $140.9 million a year earlier.

The prior quarter included a net gain from the exchange of Visa B shares and a loss from repositioning the available-for-sale securities portfolio. Excluding those items, the company said prior-quarter net income would have been $156.5 million, or $2.59 per diluted share.

Here's how the company did:

• Earnings per share: $2.64 per diluted share vs. $2.92 in the prior quarter and $2.22 a year earlier
• Net income: $159.9 million vs. $176.5 million in the prior quarter and $140.9 million a year earlier
• Net interest income: $370.0 million vs. $351.8 million in the prior quarter
• Other operating revenue: $191.5 million vs. $237.6 million in the prior quarter

Net interest income rose $18.1 million to $370.0 million. Net interest margin widened to 3.00% from 2.91% in the prior quarter, which was also the level a year earlier.

Core net interest margin, which excludes trading activities and is a non-GAAP measure, or one not calculated under generally accepted accounting principles, rose 8 basis points to 3.21%. The company said loan growth and fixed-rate asset repricing helped.

Fees and commissions fell $14.0 million to $188.0 million. Brokerage and trading revenue dropped $13.0 million to $19.5 million. The company said an unfavorable rate environment and lower fixed-income trading volumes drove the decline.

Mortgage banking revenue decreased $2.2 million to $16.7 million, driven by lower production volume and spreads as mortgage rates rose.

Other gains, net, were $5.7 million, compared with $42.4 million in the prior quarter. That quarter included a $30.9 million pre-tax gain, net of economic hedge, from the exchange of Visa B shares.

Total operating expense was $360.7 million, stable from the prior quarter and down from $369.8 million a year earlier. Excluding deferred compensation, operating expense rose $6.4 million.

Period-end loans rose $646 million, or 2.4%, to $27.7 billion, and were up 11.5% from a year earlier. Energy loans grew $264 million to $3.3 billion, and mortgage finance loans rose $137 million to $589 million.

Period-end deposits decreased $324 million to $39.5 billion. The loan-to-deposit ratio was 70%, up from 68% at June 30.

Nonperforming assets were $67 million, or 0.24% of outstanding loans and repossessed assets, up from $63 million, or 0.23%, at June 30. Net charge-offs were $886 thousand, or 0.01% of average loans on an annualized basis.

The company recorded no provision for credit losses in the quarter, compared with $2.0 million a year earlier.

The tangible common equity ratio was 9.16%, down from 9.61% at June 30. The common equity Tier 1 capital ratio was 12.73%, compared with 12.89%.

No shares were repurchased in the third quarter. The company bought back 2,519 shares in the second quarter at an average of $129.89 per share.

CEO Stacy Kymes said: "We delivered another strong quarter, with $646 million of loan growth, 11.5% year-over-year loan growth, continued expansion in core net interest income, and peer-leading credit outcomes."

"Higher rates created headwinds for mortgage banking and fixed-income trading this quarter, but we view those businesses through the cycle," Kymes said.

Commercial Banking contributed $140.7 million to net income before taxes, down $5.4 million from the second quarter. Wealth Management contributed $28.8 million, down $6.1 million. Consumer Banking contributed $14.5 million, largely unchanged.

Transaction card revenue was $32.2 million, which the company's earnings presentation called record quarterly revenue for the business line. Assets under management or administration were $129.3 billion, stable from the prior quarter.

The company's earnings presentation lists full-year 2026 outlook figures. Net interest income is expected at $1.43 billion to $1.44 billion, against $1.3 billion in 2025. The outlook reflects one Fed Funds increase through year-end 2026.

Fees and commissions are expected to be over $800 million, against $801 million in 2025. Total revenue is expected to grow at a mid single-digit rate, and expenses are expected to grow about 1%.

The efficiency ratio is projected at about 62%, or about 63% adjusted to exclude the Visa Class B gain, compared with 65.1% in 2025. Provision expense is expected to be below $10 million, against $2 million in 2025.

The filing does not say which of these figures changed from earlier guidance.

The company will host a conference call at noon Central time on Tuesday, Oct. 20, with a live webcast and slides available at bokf.com.