BOK Financial Q3 2026 Profit Rises as Loan Growth Lifts Interest Income

BOK Financial Corporation (NASDAQ: BOKF) reported higher third-quarter earnings from a year earlier as loan growth and fixed-rate asset repricing lifted net interest income and margins. Profit declined from the second quarter, however, when results included a net gain tied to the exchange of Visa Class B shares and a loss from repositioning the available-for-sale securities portfolio.

Net income attributable to shareholders was $159.9 million, or $2.64 per diluted share, for the quarter ended September 30, 2026. That compared with $176.5 million, or $2.92 per share, in the prior quarter and $140.9 million, or $2.22 per share, a year earlier. Excluding the Visa-related gain and securities repositioning loss, second-quarter net income would have been $156.5 million, or $2.59 per share, on a non-GAAP basis.

Pre-provision net revenue was $200.8 million, compared with $227.7 million in the second quarter and $178.6 million a year earlier. The adjusted efficiency ratio was 63.5%, unchanged sequentially and down from 66.9% in the third quarter of 2025.

Loan growth supports net interest income

Net interest income increased 5.2% sequentially and 9.6% year over year to $370.0 million. Net interest margin expanded nine basis points from the previous quarter to 3.00%, while core net interest margin excluding trading, a non-GAAP measure, rose eight basis points to 3.21%. BOK Financial said loan growth and the repricing of fixed-rate assets supported the core margin.

Period-end loans grew by $646 million, or 2.4%, during the quarter to $27.7 billion. Loans were 11.5% higher than a year earlier. Average loans increased 1.7% sequentially to $27.2 billion, while average deposits rose 0.8% to $39.5 billion. Period-end deposits declined 0.8% from the prior quarter but increased 2.7% year over year.

Commercial loans rose 2.2% sequentially to $16.66 billion, led by energy and mortgage finance. Energy balances increased 8.6% to $3.32 billion, reflecting higher utilization among existing clients and new production. Mortgage finance loans climbed 30.4% to $589 million. Healthcare balances declined 1.4% to $4.03 billion.

Commercial real estate loans increased 4.2% to $6.13 billion as commitments made in previous quarters began to fund. Industrial loans rose 12.9%, while office balances declined 1.4%. Office commercial real estate represented 3% of total loans at quarter-end.

The loan-to-deposit ratio increased to 70% from 68% in the second quarter. Tangible common equity, a non-GAAP measure, was 9.2%.

Market-sensitive fees decline

Total fees and commissions fell 6.9% sequentially and 8.1% year over year to $188.0 million, primarily because of weaker markets and securities revenue.

Total trading revenue, including trading-related net interest income, decreased to $15.0 million from $25.0 million in the second quarter. The company attributed the decline in trading fees to reduced fixed-income activity as longer-term rates rose, partly offset by higher trading net interest income.

Markets and securities fees dropped 29.6% sequentially to $36.2 million. Syndication fees declined by $3.4 million after a strong second quarter, and mortgage production revenue fell by $2.1 million because of lower volumes and compressed margins. Investment banking fees increased by $4.3 million to $10.2 million, largely on municipal bond underwriting activity.

Fiduciary and asset management revenue declined 1.6% sequentially to $69.9 million, though BOK Financial said core revenue increased after excluding approximately $1.7 million of seasonal tax preparation fees recorded in the second quarter. Assets under management or administration were unchanged at $129.3 billion and increased 5.4% from a year earlier.

Transaction card revenue reached a quarterly record of $32.2 million, up 1.9% sequentially and 9.3% year over year. Deposit service charges and fees increased 7.0% from the prior-year period to $34.1 million.

Credit costs remain limited

BOK Financial recorded no provision for credit losses in the quarter. The company said improved economic forecast assumptions offset the effect of loan growth.

Net charge-offs were $886,000, with trailing 12-month net charge-offs equal to two basis points of average loans. Nonperforming assets excluding loans guaranteed by U.S. government agencies totaled $58 million, or 0.21% of outstanding loans and repossessed assets. The combined allowance for credit losses was $322 million, or 1.16% of loans.

Total operating expenses decreased 0.3% sequentially and 2.5% year over year to $360.7 million. Personnel expenses were $213.3 million. Excluding deferred compensation, personnel costs increased 3.2% from the second quarter, reflecting investments in revenue-producing staff, higher loan-production incentives and increased employee benefit costs.

2026 outlook

For full-year 2026, management expects year-end loan growth of more than 10% and net interest income of $1.43 billion to $1.44 billion. The outlook assumes one increase in the federal funds rate through year-end and longer-term rates consistent with the market-implied forward curve as of the presentation date.

BOK Financial expects fees and commissions of more than $800 million, reflecting the rate environment’s effect on market-sensitive businesses. Total revenue is projected to grow at a mid-single-digit rate, while expenses are expected to increase by approximately 1%. Management also forecasts an efficiency ratio of about 62%, or approximately 63% excluding the Visa Class B gain, and provision expense below $10 million.

The outlook assumes no change in the economic environment. The company identified interest-rate movements, deposit pricing, commodity prices, credit deterioration, regulatory changes, cybersecurity incidents, liquidity conditions and customer repayment capacity among the factors that could cause actual results to differ from its expectations.