BOK Financial Corporation

Second quarter reported earnings were $176.5 million, or $2.92 per diluted share. Adjusted for the Visa Class B exchange gain and securities repositioning, earnings were $156.5 million, or $2.59 per share. Total loans grew 3.4% sequentially and 11.5% year over year, with core C&I loans up 3.9% sequentially and 11.1% year over year. Total fee income was $202 million, down $7.8 million sequentially, while fiduciary and asset management revenue set a record, growing $4.5 million quarter over quarter. Net interest income increased $9.3 million and reported net interest margin rose 1 basis point; core net interest income increased $6.5 million and core margin declined 2 basis points. Net charge-offs were $500 thousand, NPAs not guaranteed by the U.S. government rose to $55 million, and the allowance for credit losses was $323 million, or 1.19% of outstanding loans. For full-year 2026, management now expects loan growth over 10%, total revenue growth in the mid-single digits but toward the upper end, net interest income in the upper half of the $1.42 billion to $1.45 billion range, fee income in the lower half of the $820 million to $845 million range, expenses in the low single digits toward the lower end, an efficiency ratio of approximately 62% including the Visa gain, and provision expense below $20 million.

Stacy Kymes characterized the quarter as excellent and framed it as evidence that the franchise is positioned for continued growth. He emphasized record loan production, broad-based loan growth, strong fee-based momentum, disciplined expenses, and outstanding credit quality, while also noting that market disruption has created hiring opportunities in Texas, Colorado, Arizona, and Oklahoma. His tone was upbeat and confident, especially around the long-term value of the franchise and the ability to grow faster than peers.

Martin Grunst said net interest income and margin were helped by loan and deposit growth, fixed-rate asset repricing, and the eventual return of the temporary 3-basis-point headwind from cash margin posted for energy derivative customers. He highlighted the $30.9 million pretax Visa gain, the $4.6 million pretax loss on securities repositioning, and said the reinvested $268 million should improve yields going forward. On costs, he said expenses rose $7.5 million, but excluding deferred compensation they fell $1.4 million; for 2026 he guided to low-single-digit expense growth toward the lower end, an efficiency ratio around 62% including the Visa gain, and provision expense below $20 million.

Analysts focused on the path of net interest margin, deposit competition, loan growth durability, the Visa gain’s impact on guidance, trading revenue volatility, capital deployment, and the mortgage finance build-out. Management said margin should expand in the back half of the year as the derivative cash margin normalizes, securities repricing continues, and DDA growth helps; it also said deposit pricing is competitive but not irrational and the company is not assuming rate relief. On loans, Stacy Kymes said pipelines remain strong but not quite as strong as they were going into Q2, while mortgage finance is tracking ahead of prior goals and had its first month above breakeven in June. On capital, Martin Grunst said the Visa gain makes an already strong capital position even stronger, and the team will remain patient and opportunistic about deployment.