BOK Financial (NASDAQ:BOKF) outlined what management called a strong start to 2026, reporting first-quarter earnings of $155.8 million, or $2.58 per diluted share, supported by broad-based loan growth, resilient fee income and a step down in expenses. Executives also reiterated expectations for mid-single-digit revenue growth and loan growth near 10% for the full year, while noting that net interest income guidance has shifted modestly lower due to an updated rate outlook.
Quarterly results highlighted loan growth and lower expenses
CEO Stacy Kymes said the quarter “stood out” for consistent execution across the company, adding that teams are “continu[ing] to build on the momentum we established in 2025.” Total loans grew $536 million, or 2.1% sequentially, and Kymes said the increase was “well distributed across the portfolio.”
On the cost side, Kymes said expenses “declined meaningfully,” and described the quarter as offering “a clean view of a more typical expense profile.” Total expenses fell $6.9 million, and the company posted an efficiency ratio of 63.2%. Capital levels were described as “very strong,” with tangible common equity at 9.3% and CET1 at 12.6%.
Loan portfolio trends: C&I growth, energy reversal, and CRE increase
Management described strength across several loan categories during the quarter:
- Core C&I: Kymes said the combined services and general business portfolios grew 2.1% sequentially, marking the fourth consecutive quarter of growth.
- Healthcare: Loans decreased 1.3%. Kymes said production and pipelines remain strong, attributing the decline primarily to cyclical payoff activity. He also noted the segment supported fee income with syndication fees during the quarter.
- Energy: Energy loans increased 4.3%, which Kymes said marked “another reversal of the payoff trends” discussed last year. He noted the company is not currently seeing clients seeking to add production capacity.
- Commercial real estate: CRE loans rose 3.7% versus the prior quarter, with Kymes emphasizing the company remains within concentration limits and can be selective on structure and returns.
- Mortgage finance: Mortgage finance loans totaled $228 million, up $50 million from the fourth quarter. Kymes said growth in the first quarter was driven by existing businesses.
During the Q&A, Kymes discussed what might drive more energy-related drilling activity, saying the forward “strip price” two to three years out matters more than near-term spot pricing. He noted oil prices three years out were “below $70,” which he called “kind of a magic number” for drilling incentives. He also cited rig counts as down versus a year ago.
Credit metrics remained strong; no provision required in Q1
Kymes kept his credit commentary brief, saying, “Credit quality remains strong.” Non-performing assets not guaranteed by the U.S. government decreased $14 million to $52 million, and non-performing assets to period loans and repossessed assets fell 6 basis points to 20 basis points.
Committed criticized assets also declined and were described as “very low relative to historical standards.” Net charge-offs were $1.9 million for the quarter, averaging three basis points over the last 12 months. Kymes said the limited charge-offs show “no patterns or concentrations” of concern and added that the company has “virtually no exposure to private credit facilities.”
No provision was required in the first quarter. Kymes said the provision benefited from higher projected oil prices in the energy portfolio and improved overall credit quality, offset by loan growth and a modest downward revision to economic forecast assumptions. The combined allowance for credit losses stood at $323 million, or 1.23% of outstanding loans.
Fee income solid despite volatility; AUMA declined with markets and seasonality
Executive Vice President of Wealth Management Scott Grauer said fee income “remained solid” despite market volatility. Total fee income declined $5.1 million sequentially after a strong fourth quarter, totaling $209.8 million. Grauer noted that fee income exceeded three of the past four quarters.
Trading revenue, including trading-related net interest income, increased to $34.7 million from $34.1 million in the prior quarter. Customer hedging revenue rose $1.1 million, which Grauer attributed to increased hedging activity by energy clients when higher short-term crude oil prices appeared.
Investment banking revenue, including investment banking and syndication fees, decreased $4.1 million following what Grauer called “two outstanding quarters.” He pointed to “normal seasonality” and said activity tends to build in the second quarter, while also noting the first quarter of 2026 represented the strongest first-quarter syndication activity on record and a 40% increase from the prior year’s first quarter.
Mortgage banking revenue increased $2 million quarter over quarter due to higher production and refinance activity. Fiduciary and asset management revenue contributed $66.5 million and was described as the second strongest quarter on record. Assets under management and administration declined $3 billion to $123.6 billion, driven by lower market valuations and normal seasonality. Transaction card revenue contributed $32 million and continued “record-setting results,” according to Grauer.
Net interest margin pressures and 2026 guidance updates
CFO Martin Grunst said net interest income decreased $2.7 million and net interest margin declined 8 basis points. Excluding trading, core net interest income fell $4.8 million and core margin declined 7 basis points. Grunst said the company continues to expect margin expansion over the course of 2026, citing fixed-rate asset repricing and loan growth as positive drivers.
Grunst listed several factors that pressured margin during the quarter, including a seasonal decline in non-interest DDA, day-count effects, lower loan fees, normalization of SOFR spreads after being “abnormally wide” in the fourth quarter, funding costs tied to margin posted for energy derivatives, and the full-quarter impact of subordinated debt issued last November.
For 2026, Grunst reiterated expectations for loan growth near 10% and total revenue growth in the mid-single digits. The company’s rate outlook has shifted to assume no rate cuts in 2026 versus two cuts in prior guidance. As a result, net interest income expectations were adjusted slightly lower to $1.42 billion to $1.45 billion, while fee income expectations were increased to $820 million to $845 million. Expense growth is expected to be in the low single digits, translating to a full-year average efficiency ratio “in the 63% area.”
Provision expense guidance for 2026 was set at $15 million to $35 million. Grunst said the guidance allows for some normalization later in the year, though management said it sees no tangible evidence of credit normalization currently.
Grunst also noted that Visa announced on April 13 the commencement of its second exchange program for Visa Class B shares, allowing the company to monetize 50% of its remaining Visa B shares. He said BOK Financial holds the equivalent of approximately 190,000 common shares, and monetizing half would equate to roughly a $29 million pre-tax benefit based on Visa’s April 13 closing price of $309 per share. The potential gain is not included in guidance, but Grunst said the company expects to participate and recognize a gain based on market value at the time of exchange or disposition.
In closing remarks, Kymes said the first quarter “set the stage” with diversified loan growth, resilient fee performance, excellent credit quality and disciplined expense management, adding that the company is “well positioned for growth as the year progresses.”
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.
