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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.
Quarterly 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.
As 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.
Non-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.
As 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.
During the reported quarter, BOK Financial repurchased 663,298 shares at an average price of $93.99 per share.
BOK 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-eps-surprise-chart | BOK Financial Corporation Quote
Currently, BOK Financial carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First 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.
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This article originally published on Zacks Investment Research (zacks.com).
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