BOK Financial (BOKF) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $119.8 million ($1.86 per diluted share), down from $136.2 million in Q4 2024 but up from $83.7 million in Q1 2024, reflecting strong capital and liquidity positions.

• Net interest income rose to $316.3 million, with net interest margin expanding to 2.78% from 2.75% sequentially; core NIM excluding trading was 3.05%.

• Fees and commissions revenue fell $22.8 million sequentially, mainly due to a $24.4 million drop in trading revenue amid market volatility and margin compression.

• Asset quality remains strong with non-performing assets at 0.33%–0.36% of loans and repossessed assets; net charge-offs were $1.1 million (0.02% of average loans annualized).

• Period-end loans decreased 1.8% sequentially to $23.7 billion, mainly due to lower energy portfolio balances; deposits grew $90 million to $38.3 billion.

Financial highlights

• Net interest income for Q1 2025 was $316.3 million, up $22.7 million year-over-year and $3.2 million sequentially; net interest margin improved to 2.78%.

• Fees and commissions revenue was $184.1 million, down $16.4 million year-over-year, with trading revenue at $23.3 million, down from $37.7 million prior quarter.

• Operating expense was flat sequentially at $347.5 million, up $7.1 million year-over-year, driven by higher personnel costs.

• Mortgage banking revenue rose $1.7 million to $19.8 million, driven by higher production and improved client demand.

• Average deposits grew 1.4% sequentially and 9.5% year-over-year to $38.4 billion.

Outlook and guidance

• 2025 full-year net interest income expected between $1.325 and $1.375 billion, assuming two 25bp rate cuts; additional cuts could provide upside.

• Mid to upper single-digit loan growth projected for 2025, with CRE and Mortgage Finance expansion in H2.

• Fee and commission guidance range widened due to market uncertainty, especially in fixed-income trading.

• Management expects continued strong capital and liquidity, with a robust loan pipeline and excellent credit quality.

• Efficiency ratio targeted at approximately 65% for 2025; expenses to grow mid-single digits.