BOK Financial's Q2 Earnings Beat on NII & Loan Growth, Stock Gains

Shares of BOK Financial Corporation BOKF gained 1.2% in yesterday’s trading session in response to better-than-expected second-quarter 2025 results. Earnings of $2.19 per share surpassed the Zacks Consensus Estimate of $1.98. However, the bottom line declined 13.8% from the prior-year quarter.BOKF’s results benefited from higher net interest income (NII), a rise in loan balance and the absence of provisions. However, lower deposit balance and elevated expenses were the major undermining factors.Net income attributable to shareholders was $140 million, declining 14.5% year over year.BOKF’s Revenues Decline, Expenses UpQuarterly net revenues of $535.2 million (net interest income and total other operating revenues) decline 3.6% year over year. However, the top line surpassed the Zacks Consensus Estimate of $517.9 million.Net interest income was $328.2 million, up 10.8% year over year. The net interest margin expanded 24 basis points to 2.80%.Total fees and commissions were $197.3 million, down 1.3% year over year. The fall was mainly due to lower brokerage and trading revenues.Total other operating expenses were $354.5 million, up 5.3% year over year. This rise mainly resulted from higher personnel expenses.The efficiency ratio rose to 65.42% from the prior year’s 59.83%. A rise in the efficiency ratio indicates a deterioration in profitability.BOK Financial’s Loan Balance Rise, Deposits DeclineAs of June 30, 2025, total loans were $24.3 billion, up 2.5% from the prior quarter. The increase was primarily due to growth in commercial real estate loans and loans to individuals.Total deposits slightly decline on a sequential basis to $38.2 billion. The decline was driven by reduced demand and savings.BOKF Credit Quality ImprovesNon-performing assets were $81 million or 0.33% of outstanding loans and repossessed assets as of June 30, 2025, which decreased from $93 million or 0.38% in the prior-year quarter.The company recorded nil provisions for credit losses compared with $8 million in the prior-year quarter. BOKF recorded net charge-offs of $561 thousand, down 91.9%.The allowance for loan losses was 1.14% of outstanding loans as of June 30, 2025, which declined 3 bps from the year-ago quarter.BOKF’s Capital Ratios Improve & Profitability Ratios DeclineAs of June 30, 2025, the common equity Tier 1 capital ratio was 13.59%, up from 12.10% as of June 30, 2024. The tier 1 capital ratio and total capital ratio were 13.60% and 14.48% compared with 12.11% and 13.25%, respectively, as of June 30, 2024.At the end of the second quarter, return on average equity was 9.70%, down from the year-earlier quarter’s 12.79%. Return on average assets was 1.07%, down from 1.29% a year ago.BOK Financial’s Share Repurchase UpdateDuring the reported quarter, BOK Financial repurchased 663,298 shares at an average price of $93.99 per share.Our View on BOK FinancialBOK Financial’s solid loan balance will continue to support its top-line growth. Further, improving asset quality is a major positive for the company amid a challenging operating backdrop. However, an increase in operating expenses is a near-term concern.BOK Financial Corporation Price, Consensus and EPS Surprise BOK Financial Corporation price-consensus-eps-surprise-chart | BOK Financial Corporation QuoteCurrently, BOK Financial carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of BOKF’s Peer BanksFirst Horizon Corporation’s FHN second-quarter 2025 adjusted earnings per share (excluding notable items) of 45 cents surpassed the Zacks Consensus Estimate of 41 cents. This compares favorably with 36 cents in the year-ago quarter.FHN’s results benefited from a rise in NII and non-interest income, along with a decline in expenses. Also, lower provisions and a rise in loans and deposit balances were other positives.Texas Capital Bancshares, Inc. TCBI reported second-quarter 2025 adjusted earnings per share of $1.63, which surpassed the Zacks Consensus Estimate of $1.28. Further, the figure also compared favorably with 80 cents in the year-ago quarter.TCBI's results benefited from an increase in NII, non-interest income, and higher loan and deposit balances. However, an increase in expenses acted as a headwind.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Capital Bancshares, Inc. (TCBI): Free Stock Analysis Report BOK Financial Corporation (BOKF): Free Stock Analysis Report First Horizon Corporation (FHN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks