BOK Financial (NASDAQ:BOKF) reported fourth-quarter earnings of $177.3 million, or $2.89 per diluted share, and full-year 2025 earnings of $578 million, or $9.17 per diluted share, which management said marked record earnings per share for both the quarter and the year. Executives emphasized broad-based balance sheet growth, expanding margins, strong fee income, and continued credit strength during the company’s fourth-quarter 2025 earnings call.
Broad-based loan growth and continued margin expansion
CEO Stacy Kymes said the company expanded loan balances by more than $1.5 billion in 2025, representing 6.4% growth, with loans growing at an annualized rate of 11% over the last nine months of the year following what he described as an “economic pause” in the first quarter. For the fourth quarter, outstanding loan balances grew $786 million, or 3.2% sequentially, with core C&I, healthcare, and energy portfolios collectively expanding 5.3%.
Commercial real estate loans decreased 1.4% from the prior quarter, which management attributed to normal refinancing into the permanent market, though the portfolio was up 12.1% year over year. Kymes said the company saw strong CRE originations in the quarter and described the pipeline as robust.
On profitability, executives said BOK Financial expanded net interest margin in every quarter of 2025. CFO Marty Grunst reported fourth-quarter net interest income increased $7.6 million and reported net interest margin expanded seven basis points; excluding trading, core net interest income rose $8.7 million and core margin increased six basis points. Grunst attributed the core margin expansion to fixed-rate asset repricing, deposit repricing, and loan and deposit growth, along with a small benefit from SOFR spreads and shifting some wholesale borrowings into wholesale deposits. That benefit was partially offset by the impact of a subordinated debt issuance.
Fee income strength led by asset management and cards
Executives again positioned fee income as a key differentiator. Kymes said fee income contributed $801 million to revenue in 2025, representing 38% of total revenue. In the fourth quarter, total fee income increased 5.1% sequentially, which management described as broad-based.
Scott Grauer, executive vice president of Wealth Management, said total fee income rose $10.4 million linked-quarter to $214.9 million. He also reported total trading revenue (including trading-related net interest income) of $34.1 million, up $4.3 million over the prior quarter. Trading fees increased $5.4 million, driven by higher agency mortgage-backed securities volumes. Investment banking revenue declined $1.9 million from the prior quarter following what he called a record period, but still totaled $14.3 million.
Grauer highlighted gains in recurring fee-based businesses, with a $7.1 million linked-quarter increase in asset management and transaction revenue. Fiduciary and asset management revenue increased $4.5 million, driven by customer expansion, higher market valuations, and transaction management fees. Transaction card revenue rose $2.1 million on volume growth and deepening customer relationships.
Assets under management and administration (AUMA) increased $3.9 billion in the quarter to $126.6 billion, a new record, following what Kymes said was an AUMA level that surpassed $126 billion during the quarter.
Credit quality remains “excellent”
Management repeatedly pointed to strong credit performance. Kymes said non-performing assets not guaranteed by the U.S. government decreased $847,000 to $66 million, with non-performing assets to period-end loans and repossessed assets falling one basis point to 26 basis points. Net charge-offs were $1.4 million in the quarter, averaging three basis points over the past 12 months. No provision was required in the quarter, as loan growth was balanced by an improvement in the economic forecast.
The combined allowance for credit losses totaled $327 million, or 1.28% of outstanding loans. Kymes said management expects credit normalization over the long term but anticipates net charge-offs will remain below historical norms in the near term.
Capital levels and shareholder returns
Kymes said capital remained robust with tangible common equity of 9.5% and CET1 of 12.9%. The company repurchased more than 2.6 million shares at an average price of $107.99 during the quarter.
During Q&A, Grunst said the company does not have a targeted CET1 ratio and described repurchases as “opportunistic.” He also confirmed that a portion of the fourth-quarter repurchase activity was tied to an accelerated share repurchase (ASR) executed in early November.
2026 outlook: upper single-digit loan growth, mid-single-digit revenue growth
For full-year 2026, management guided to end-of-period loan growth in the upper single digits, citing continued growth in the existing portfolio and “meaningful contributions” from the mortgage finance segment. Kymes said about $100 million of fourth-quarter growth was driven by mortgage finance and later added that the company believes it could reach $1 billion of commitments by the end of 2026, assuming roughly half is funded.
Grunst provided the following 2026 outlook metrics:
- Net interest income: $1.44 billion to $1.48 billion, assuming two rate cuts in the latter half of 2026 and a slightly steeper curve
- Fee income: $800 million to $825 million, with mid-single-digit growth in fee businesses and an expected shift of some trading revenue from fee income into net interest income if the curve steepens
- Total revenue: mid-single-digit growth (with 2025 baseline total revenue cited as $2.18 billion)
- Expenses: low single-digit growth, with a targeted full-year average efficiency ratio of 63% to 64%
- Provision expense: $25 million to $45 million, reflecting loan growth and the potential for some credit normalization later in the year
Grunst also said the company expects margin and core margin to continue expanding into 2026, driven in part by fixed-rate repricing. He cited approximately $700 million per quarter of securities repricing with a step-up in the 60 to 75 basis point range, and roughly $200 million per quarter of fixed-rate loans repricing with step-ups of more than 100 basis points.
In closing remarks, Kymes reiterated that broad-based growth has defined the quarter and the year and said the company believes its diversification and discipline have positioned it to navigate the current environment and capitalize on market disruption.
About BOK Financial (NASDAQ:BOKF)
BOK Financial Corporation (NASDAQ: BOKF), headquartered in Tulsa, Oklahoma, is a diversified financial services holding company serving businesses, professionals and individuals across the central and western United States. Through its banking subsidiary, BOK Financial offers a full suite of commercial banking, treasury and payment management services, as well as consumer deposit and lending solutions. The company’s offerings also encompass wealth management, trust and asset management, investment banking, and insurance products designed to meet the needs of both retail and institutional clients.
The roots of BOK Financial date back to the founding of the Bank of Oklahoma in 1910.
