BOK Financial Corporation's BOKF second-quarter 2026 adjusted earnings of $2.59 per share surpassed the Zacks Consensus Estimate of $2.56. The bottom line jumped 18.3% from the prior-year quarter.
BOKF’s results benefited from higher net interest income (NII) and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
Excluding the net gain related to the exchange of Visa B shares and the loss from repositioning the available-for-sale securities portfolio, net income attributable to shareholders (GAAP basis) was $176.5 million compared with $140 million in the prior-year quarter.
BOK Financial’s Revenues & Expenses Rise
Quarterly net revenues of $589.4 million (NII and total other operating revenues) rose 10.1% year over year. The top line surpassed the Zacks Consensus Estimate of $559 million.
NII was $351.8 million, up 7.2% year over year. The net interest margin expanded 11 basis points to 2.91%.
Total fees and commissions were $202 million, up 2.4% year over year. The rise was driven by higher transaction card revenues, fiduciary and asset management revenues, and deposit service charges and fees, partially offset by lower brokerage and trading revenues, mortgage banking revenues, and other revenues.
Total other operating expenses were $361.7 million, up 2% year over year. This rise was mainly driven by personnel, business promotion, net occupancy and equipment, FDIC and other insurance, data processing and communications, printing, postage and supplies, mortgage banking costs, and other expenses.
The efficiency ratio was 60.21% compared with the prior-year quarter’s 65.42%. A fall in the efficiency ratio indicates a rise in profitability.
BOKF’s Loans & Deposits Rise Sequentially
As of June 30, 2026, total loans were $27.1 billion, up 3.4% from the prior quarter. The increase was driven by growth in commercial loans and loans to individuals, while commercial real estate loans remained relatively stable.
Total deposits were $39.9 billion, up 3% sequentially. The rise was due to higher demand, interest-bearing transaction and time deposits, partially offset by a decline in savings deposits.
BOKF Credit Quality Improves
As of June 30, 2026, non-performing assets were $62.7 million or 0.23% of outstanding loans and repossessed assets compared with $81.1 million or 0.33% in the prior-year quarter.
The company recorded nil provisions for credit losses, unchanged from the prior-year quarter.
The company recorded net charge-offs of $500,000 compared with $561,000 in the year-ago quarter.
The allowance for loan losses was 1.02% of outstanding loans as of June 30, 2026, which declined 12 bps from the year-ago quarter.
BOKF’s Capital & Profitability Ratios
As of June 30, 2026, the common equity Tier 1 capital ratio was 12.89% compared with 13.59% a year earlier. The Tier 1 capital ratio and total capital ratio were 12.90% and 14.67%, respectively, compared with 13.60% and 14.48% as of June 30, 2025.
At the end of the second quarter, return on average equity was 11.73%, up from the year-earlier quarter’s 9.70%. Return on average assets was 1.30%, up from 1.07% a year ago.
BOK Financial’s Share Repurchase Update
The company repurchased 2,519 shares for $327,000 during the second quarter of 2026 at an average price of $129.89 per share.
Our View on BOK Financial
BOKF’s higher NII, fee income and solid loan balances continue to support its overall performance. The company’s improving profitability ratios and deposit growth are positive. However, rising operating expenses pose a near-term concern.
BOK Financial Corporation Price, Consensus and EPS Surprise
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.
Performance of Other Banks
First Horizon Corporation FHN posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter.
FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
M&T Bank Corporation MTB reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.
MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.
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This article originally published on Zacks Investment Research (zacks.com).