BOK Financial BOKF Q2 2026 earnings

CEO Commentary

Stacy Kymes, President and CEO, stated, “I am proud of the strong results our team delivered this quarter, highlighted by the highest quarterly loan production in the Company’s history. Loans increased nearly $900 million during the quarter and are up 11.5% from a year ago, driven by diverse growth across business lines and geographies. Core net interest income increased, margins remained stable, and our fee generating businesses continue to provide meaningful support. In fact, our Fiduciary and Asset Management business posted record revenue this quarter. Our consistent performance is rooted in a strong risk management culture, and our unique geographic footprint continues to create opportunities to grow faster than peers while maintaining our disciplined approach."

¹ Comparisons are to the prior quarter unless otherwise noted.

² See Explanation and Reconciliation of Non-GAAP Measures - Unaudited section following.

Net interest income was $351.8 million for the second quarter of 2026, an increase of $9.3 million over the prior quarter. Net interest margin expanded to 2.91% from 2.90%. For the second quarter of 2026, our core net interest margin excluding trading activities¹, a non-GAAP measure, decreased 2 basis points to 3.13% compared to 3.15% in the prior quarter. Net interest margin benefited from favorable repricing of fixed-rate assets and deposits. During the quarter, these positive drivers were partially offset by a 3 basis point impact from cash margin posted on behalf of our energy customers as oil prices increased during the quarter.

¹ See Explanation and Reconciliation of Non-GAAP Measures - Unaudited section following.

Average earning assets increased $1.0 billion. Average loan balances increased $844 million, with broad-based growth across the loan portfolio. Average trading securities increased $259 million and restricted equity securities increased $100 million. Average interest-bearing deposits increased $261 million, primarily from growth in interest-bearing transaction accounts and time deposits. Average funds purchased and repurchase agreements decreased $403 million, while average other borrowings increased $1.6 billion.

The yield on average earning assets was 5.27%, a 4 basis point increase over the prior quarter. The yield on trading securities increased 21 basis points to 4.85% and the yield on restricted equity securities increased 27 basis points to 7.66%. The yield on available-for-sale securities increased 5 basis points while the loan portfolio yield decreased 5 basis points to 6.20%.

Funding costs were 2.93%, up 1 basis point. The cost of interest-bearing deposits decreased 4 basis points to 2.67%. The cost of funds purchased and repurchase agreements increased 19 basis points to 3.09%, while the cost of other borrowings decreased 2 basis points to 3.88%. The benefit to net interest margin from assets funded by noninterest-bearing liabilities was 57 basis points, a decrease of 2 basis points.

Other Operating Revenue

Fees and commissions revenue totaled $202.0 million for the second quarter of 2026, decreasing $7.8 million compared to the prior quarter.

Brokerage and trading revenue decreased $11.2 million to $32.5 million. Trading fees and commissions revenue decreased $12.7 million due to lower trading volumes resulting from interest rate market volatility during the quarter. Customer hedging revenue decreased $1.1 million, primarily due to a decline in hedging activity from our energy customers. Investment banking revenue increased $3.2 million, largely related to the timing and volume of completed loan syndication transactions.

Fiduciary and asset management revenue increased $4.5 million, primarily related to seasonal tax preparation fee income combined with increased trust fees from higher market valuations and growth in client relationships.

Mortgage banking revenue decreased $2.0 million, primarily due to lower refinancing activity. Production revenue as a percentage of production volume decreased 65 basis points to 0.83%.

Deposit service charges and fees grew $1.1 million, largely due to an increase in the volume of transactions during the quarter.

Other gains (losses), net, were a net gain of $42.4 million compared to a net loss of $216 thousand in the prior quarter. The second quarter of 2026 included a $30.9 million pre-tax gain, net of economic hedge, related to the exchange of our Visa B shares under the recently announced exchange offer by Visa, Inc. The current quarter also included a net gain on investments related to deferred compensation of $8.8 million compared to a net loss of $1.8 million in the prior quarter.

Losses on available-for-sale securities, net, were $4.6 million in the second quarter of 2026 as we repositioned the portfolio by selling approximately $268 million of lower-yielding debt securities.

Operating Expense

Total operating expense was $361.7 million for the second quarter of 2026, an increase of $7.5 million compared to the prior quarter. The second quarter included $9.1 million of deferred compensation expense offset by gains on related investments in Other gains (losses), net. Excluding the impact of deferred compensation, total operating expense decreased $1.4 million.

Personnel costs were down $6.0 million excluding the impact of deferred compensation. Cash-based incentive compensation decreased $3.0 million, primarily driven by a decrease in trading activity during the quarter. Employee benefits expense decreased $1.8 million, largely due to a seasonal decrease in payroll taxes, partially offset by higher employee healthcare costs.

Non-personnel expense increased $4.6 million. Business promotion expense increased $1.9 million due to higher seasonal travel costs. Other expense was up $1.6 million, primarily related to an increase in operational losses.

Loans

Outstanding loans were $27.1 billion at June 30, 2026, an increase of $896 million over March 31, 2026, driven by broad-based growth across our loan portfolio. Unfunded loan commitments grew by $443 million over the first quarter of 2026 to $16.6 billion at June 30, 2026.

Outstanding commercial loan balances, which includes services, healthcare, energy, mortgage finance, and general business loans, increased $724 million over the prior quarter.

The Company launched the residential mortgage finance line of business in the third quarter of 2025, and these loan balances increased by $224 million during the current quarter to $452 million, or 2% of total loans.

Services sector loan balances were up $198 million over the prior quarter at $4.1 billion, or 15% of total loans. Services loans consist of a large number of loans to a variety of businesses, including state and local municipal government entities, Native American tribal government and casino operations, foundations and not-for-profit organizations, educational services, and specialty trade contractors.

Healthcare sector loan balances increased $128 million and totaled $4.1 billion, or 15% of total loans. Our healthcare sector loans primarily consist of $3.2 billion of senior housing and care facilities, including independent living, assisted living, and skilled nursing. Generally, we loan to borrowers with a portfolio of multiple facilities, which serves to help diversify risks specific to a single facility.

General business loans increased $128 million to $4.6 billion, or 17% of total loans. General business loans include $2.9 billion of wholesale/retail loans and $1.7 billion of loans from other commercial industries.

Energy loan balances grew by $47 million to $3.1 billion, or 11% of total loans. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 72% of committed production loans are secured by properties primarily producing oil. The remaining 28% are secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.6 billion at June 30, 2026, a $117 million increase over March 31, 2026.

Commercial real estate loan balances were largely unchanged compared to prior quarter at $5.9 billion, representing 22% of total loans. Loans secured by industrial facilities decreased $135 million. Loans secured by retail facilities increased $57 million, loans secured by office facilities increased $31 million, other real estate loans increased $29 million, and loans secured by multifamily properties increased $17 million. Unfunded commercial real estate loan commitments were $2.2 billion at June 30, 2026, a $105 million increase compared to March 31, 2026. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of capital.

Loans to individuals were up $171 million over the prior quarter to $4.9 billion and represent 18% of total loans. Personal loans increased $108 million and residential mortgage loans increased $63 million. Personal loans consist primarily of loans to Wealth Management clients secured by the cash surrender value of insurance policies or marketable securities. Personal loans also include direct loans secured by and for the purchase of automobiles, recreational and marine equipment, as well as unsecured loans.

Period End & Average Deposits

Our funding sources, which primarily include deposits and wholesale borrowings, provide adequate liquidity to meet our needs. The loan to deposit ratio was 68% at June 30, 2026, consistent with the prior quarter, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.

Period end deposits totaled $39.9 billion at June 30, 2026, a $1.2 billion increase. Interest-bearing transaction accounts increased $890 million, demand deposits increased $167 million, and time deposits increased $124 million.

Average deposits were $39.2 billion during the second quarter, a $250 million increase. Average interest-bearing transaction accounts increased $119 million and average time deposits increased $117 million.

Average Commercial Banking deposits increased $612 million to $18.9 billion, or 48% of total deposits. Our commercial deposit portfolio is highly diversified across industries and customers. The highest concentration by industry within our commercial deposit portfolio is with our energy customers representing 10% of our total deposits. Average Consumer Banking deposits increased $204 million to $8.6 billion, or 22% of total deposits. Average Wealth Management deposits decreased by $127 million to $10.7 billion, or 27% of total deposits. Average Funds Management and Other deposits decreased $439 million to $1.1 billion, or 3% of total deposits.

Capital

The company's common equity Tier 1 capital ratio was 12.89% at June 30, 2026. In addition, the company's Tier 1 capital ratio was 12.90%, total capital ratio was 14.67%, and leverage ratio was 9.81% at June 30, 2026. At March 31, 2026, the company's common equity Tier 1 capital ratio was 12.61%, Tier 1 capital ratio was 12.61%, total capital ratio was 14.39%, and leverage ratio was 9.85%.

The company's tangible common equity ratio¹, a non-GAAP measure, was 9.61% at June 30, 2026, and 9.29% at March 31, 2026. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available-for-sale securities.

The company repurchased 2,519 shares of common stock at an average price paid of 129.89 per share in the second quarter of 2026. No shares of common stock were repurchased in the first quarter of 2026. We view buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Nonperforming assets totaled $63 million, or 0.23% of outstanding loans and repossessed assets, at June 30, 2026, compared to $60 million, or 0.23%, at March 31, 2026. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $55 million, or 0.20% of outstanding loans and repossessed assets, at June 30, 2026, compared to $52 million, or 0.20%, at March 31, 2026.

Nonaccruing loans increased $2.1 million compared to March 31, 2026. New nonaccruing loans identified in the second quarter totaled $8.5 million, offset by $3.4 million in payments received and $1.3 million in charge-offs. Nonaccruing general business loans increased $2.3 million and nonaccruing services loans increased $1.7 million, while nonaccruing loans to individuals decreased $1.6 million.

Net charge-offs were $500 thousand, or 0.01% of average loans on an annualized basis, in the second quarter. At June 30, 2026, net charge-offs for the trailing twelve months were $7.4 million, or 0.03% of average loans. Net charge-offs were $1.9 million, or 0.03% of average loans on an annualized basis, in the first quarter of 2026.

No provision for expected credit losses was necessary for the second quarter of 2026. An improvement in economic forecast assumptions, including GDP growth, lower unemployment, and improved vacancy rates, compared to the prior quarter, was offset by the impact of loan growth during the quarter.

At June 30, 2026, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $323 million, or 1.19% of outstanding loans and 592% of nonaccruing loans, excluding residential mortgage loans guaranteed by U.S. government agencies. At March 31, 2026, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $323 million, or 1.23% of outstanding loans and 618% of nonaccruing loans.

¹ See Explanation and Reconciliation of Non-GAAP Measures - Unaudited section following.

Securities & Derivatives The fair value of the available-for-sale securities portfolio totaled $13.6 billion at June 30, 2026, a $43 million increase compared to March 31, 2026. At June 30, 2026, the available-for-sale securities portfolio consisted primarily of $10.1 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2026, the available-for-sale securities portfolio had a net unrealized loss of $256 million, compared to $217 million at March 31, 2026.

We hold an inventory of trading securities in support of sales to a variety of customers. At June 30, 2026, the trading securities portfolio totaled $5.0 billion, compared to $5.7 billion at March 31, 2026.

The company also maintains a portfolio of residential mortgage-backed and commercial mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. This portfolio of fair value option securities decreased $150 million to $28 million at June 30, 2026.

Derivative contracts are carried at fair value. At June 30, 2026, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer risk management programs totaled $445 million, compared to $748 million at March 31, 2026. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $433 million at June 30, 2026, and $734 million at March 31, 2026.

The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $914 thousand during the second quarter of 2026, including a $7.3 million decrease in the fair value of securities and derivative contracts held as an economic hedge, a $6.3 million increase in the fair value of mortgage servicing rights, and $110 thousand of related net interest income.

Second Quarter 2026 Segment Highlights

Commercial Banking contributed $146.2 million to net income before taxes in the second quarter of 2026, an increase of $11.4 million over the first quarter of 2026. Combined net interest income and fee revenue totaled $240.4 million, an increase of $7.9 million. Net interest income increased $5.5 million due to increased loan volumes and beneficial repricing of deposits. Investment banking revenue increased $3.9 million, primarily due to higher loan syndication fees and was partially offset by a $1.4 million decrease in customer hedging revenue. Other operating expenses were consistent with the prior quarter. Other gains, net, were $4.3 million for the second quarter of 2026, compared to $1.2 million in the first quarter of 2026 from merchant banking activities. Average loans increased $770 million, or 4%, to $22.0 billion. Average deposits were $18.9 billion, an increase of $612 million, or 3%.

Consumer Banking contributed $13.6 million to net income before taxes in the second quarter of 2026, a decrease of $5.6 million. Combined net interest income and fee revenue decreased $1.2 million, driven by a decrease in mortgage production performance and lower card-network incentives, partially offset by changes in deposit spreads. The net cost of the change in the fair value of mortgage servicing rights and the related economic hedges was $914 thousand, compared to a net benefit of $2.0 million in the prior quarter. Other operating expenses were consistent with the prior quarter. Corporate expense allocations increased $1.9 million. Average loans increased $50 million, or 2%, to $2.6 billion. Average deposits increased $204 million, or 2%, to $8.6 billion.

Wealth Management contributed $35.0 million to net income before taxes in the second quarter of 2026, a decrease of $2.6 million compared to the first quarter of 2026. Combined net interest income and fee revenue decreased $6.9 million, largely due to reduced trading activity from interest rate market volatility during the quarter, partially offset by a $4.5 million increase in fiduciary and asset management revenue from seasonal tax preparation fee income combined with higher trust business line fees. Other operating expenses decreased $4.0 million, primarily due to lower cash-based incentive compensation costs driven by the decrease in trading activity. Average loans increased $48 million, or 2%, to $2.5 billion. Average deposits were largely unchanged at $10.7 billion. Assets under management or administration were $129.3 billion, an increase of $5.7 billion, or 5%.

Conference Call & Webcast The company will host a conference call at noon Central time on Tuesday, July 21, 2026, to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at bokf.com. The conference call can also be accessed by dialing 1-800-715-9871 toll free, or 1-646-307-1963, conference ID: 6617678. A webcast replay will also be available shortly after the conclusion of the live call at bokf.com or by dialing 1-800-770-2030 and referencing replay PIN: 6617678.

About BOK Financial Corporation

BOK Financial Corporation is a $53 billion regional financial services company headquartered in Tulsa, Oklahoma with $129 billion in assets under management or administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc.; and BOK Financial Private Wealth, Inc. BOKF, NA's holdings include TransFund and Cavanal Hill Investment Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Connecticut, Nebraska, Tennessee, and Wisconsin. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of June 30, 2026 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “outlook,” “projects,” “will,” “intends,” “may,” “could,” “should,” “would,” “potential,” “continue,” “seek,” “target,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that acquisitions and growth endeavors will be profitable are statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified and for which BOK Financial assumes no responsibility for the accuracy or completeness. These various forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. All statements other than statements of historical fact are forward-looking statements. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to: changes in government; changes in governmental economic policy, including tariffs; changes in commodity prices; interest rates and interest rate relationships; inflation; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulations; tax laws; prices, levies and assessments; the impact of technological advances; trends in customer behavior as well as their ability to repay loans; credit quality deterioration; cybersecurity incidents and data breaches; operational failures or interruptions; liquidity risks; capital adequacy requirements; litigation and regulatory enforcement actions; and other risks detailed in BOK Financial Corporation’s filings with the Securities and Exchange Commission. BOK Financial Corporation and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS – UNAUDITED

AVERAGE BALANCE SHEETS – UNAUDITED

STATEMENTS OF EARNINGS – UNAUDITED

QUARTERLY EARNINGS TREND – UNAUDITED

FINANCIAL HIGHLIGHTS – UNAUDITED

1 See Explanation and Reconciliation of Non-GAAP Measures - Unaudited section following.

2 Excludes 1% excise tax on corporate stock repurchases.

³ Actual interest earned on fair value option securities less internal transfer-priced cost of funds. 15

1 See Explanation and Reconciliation of Non-GAAP Measures - Unaudited section following.

2 Excludes 1% excise tax on corporate stock repurchases.

³ Actual interest earned on fair value option securities less internal transfer-priced cost of funds. 16

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES – UNAUDITED

Explanation of Non-GAAP Measures

The tangible common equity ratio and return on average tangible common equity are primarily based on total shareholders' equity, which includes unrealized gains and losses on available-for-sale securities, less intangible assets and equity that do not benefit common shareholders. These measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income in shareholders' equity.

The efficiency ratio and adjusted efficiency ratio measure the company's ability to use its assets and manage its liabilities effectively in the current period.

Pre-provision net revenue is a measure of revenue less expenses and is calculated before provision for credit losses and income tax expense. This financial measure is frequently used by investors and analysts and enables them to assess a company's ability to generate earnings to cover credit losses through a credit cycle. It also provides an additional basis for comparing the results of operations between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.

Net interest income and net interest margin excluding trading activities removes the effect of trading activities on these metrics allowing management and investors to assess the performance of the company's core lending and deposit activities without the associated volatility from trading activities.

We believe adjusting net income and earnings per share for notable non-core items enhances comparability of results with prior periods, demonstrates the impact of significant items, and provides a useful measure for determining the company's expenses that are core to our business operations and are expected to recur over time.

LOANS TREND – UNAUDITED

LOANS MANAGED BY PRINCIPAL MARKET AREA – UNAUDITED

Loans attributed to a principal market may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA – UNAUDITED

NET INTEREST MARGIN TREND – UNAUDITED

Yield calculations are shown on a tax-equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

CREDIT QUALITY INDICATORS – UNAUDITED

¹ Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

¹ Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

SEGMENTS – UNAUDITED

Certain prior period amounts have been reclassified to conform to current period presentation.