BOK Financial Corporation

Good afternoon, and thank you for joining our discussion of BOK Financial's second quarter 2025 financial results. Our CEO, Stacy Kimes, will provide opening comments and cover our loan portfolio and related credit metrics. Scott Brower, Executive Vice President of Wealth Management, will cover our fee-based results. Our CFO, Marty Gruntz, will then discuss financial performance for the quarter and our forward guidance. Slide presentation and press release are available on our website at BOKF.com. We refer you to the disclaimers on slide two regarding any forward-looking statements made during this call. I will now turn the call over to Stacy Kynes, who will begin on slide four.

Thank you, Heather. We appreciate you joining the call this afternoon. We're pleased to report earnings of $140 million, or EBS, of $2.19 per diluted share for the second quarter. The word that comes to mind for this quarter is momentum. During the quarter, we saw a re-acceleration of loan growth with the anticipated fund-up of our CRE book, continued strength in the core CNI portfolio, and a tapering of the abnormal payoff activity that has recently impacted outstandings in our specialized businesses. Looking ahead, we will launch our new mortgage finance line of business, which should further support future loan growth. This was made possible by consistently investing in the right talent and systems to enable the future growth of our business. We realize this does increase expenses in the current period, but it enhances our long-term sustainable growth and positive operating leverage for years to come. E-income was another bright spot for the quarter, with total fees and commissions up 7.2% sequentially. Trading activity normalized this quarter as the macro environment uncertainty abated and we saw more typical levels of customer engagement. Not only was our trading business up this quarter, we saw broad base growth across our fee income businesses with several lines producing record quarterly results. Net interest income grew for the fifth consecutive quarter, and we continue to experience margin expansion as well. With a loan deposit ratio of 64%, we are well positioned to continue optimizing pricing of the deposit book. Even in our current levels of liability betas, We've exceeded our most recent hiking cycle beta and see further opportunities to the upside. Our capital levels remain robust and strengthened once again this quarter, with TCE reaching 9.6% and CET1 reaching 13.6%. This growth occurred even though we took several capital actions to create value for our shareholders, including repurchasing over 660,000 shares below $94 per share and redeeming all $131 million of our Tier 2 capital instruments. Credit has long been a strength for us, and we continue to be well-reserved with a combined allowance at a healthy 1.36% of outstanding loans. Criticized and classified levels remain well below their pre-pandemic levels. Turning to slide six, I wanted to spend a little time highlighting the segments of our loan book. Total outstanding loans grew 2.5% this quarter, which is over 10% on an annualized basis, led by growth in commercial real estate, our core C&I portfolio, and loans to individuals. Our core C&I loan portfolio, which represents our combined services and general business portfolios, grew 1.1%, led by Native American lending and general business loans. Our specialty lending portfolio decreased 1.6%, with contraction in our energy portfolio of 4.4%. This was partially offset by expansion in our healthcare portfolio of 0.5%, which had a strong quarter of new originations. These portfolios have experienced elevated levels of payoff activity over the past couple of quarters. And while that activity is still present, it has abated from abnormally high levels. In fact, when we look specifically at the energy book, Most of the payoff activity for the quarter was in April, while the months of May and June were very stable. We are confident in our ability to grow these businesses over time and pipelines remain healthy. Our CRE business increased 6.9% quarter over quarter, with the majority of the growth coming from multifamily housing, retail, and industrial projects. As we mentioned previously, we anticipated a fund up of our CRE portfolio. This portfolio recently came under its internal concentration limits. We have focused on building commitments over the past few quarters, but it takes time for this portfolio, which is largely construction, to begin funding up and showing increases in outstanding balances. We expect growth and outstanding balances to continue. Our expansion into the mortgage finance and warehouse lending business is on track. We've approved four credit relationships as of this call, and the pipeline is strong. In fact, we expect to fund our first loan in the next couple of weeks as our system implementation is nearly complete. We've hired a talented and experienced team to build this business, and the related expense is embedded in the run rate you see today. All of this combined gives us confidence in our ability to achieve the outlook that we set at the beginning of the year. Transitioning to slide seven, credit quality remains excellent across the loan portfolio, so I will keep my commentary brief. MPAs not guaranteed by the U.S. government decreased $4 million to $74 million. The resulting non-performing assets to period loans and repossessed assets decreased two basis points to 31 basis points. Admitted criticized assets ticked up slightly this quarter, but remained very low relative to historical standards. We had minimal net charge-offs of $561,000 during the quarter, with net charge-offs averaging one basis point over the last 12 months. We expect net charge-offs to remain below historical norms in the future. Our combined allowance for credit losses is $330 million, or 1.36% of outstanding loans, which is a healthy reserve level. Our track record speaks for itself as we've demonstrated consistency in the credit space time and time again. And now I'll turn the call over to Scott. Thank you, Stacy.

Turning to our operating results for the quarter on slides 9 and 10, Total fee income increased $13.2 million on a linked quarter basis, contributing $197.3 million to revenue. Total trading revenue, which includes trading-related net interest income, was $30.5 million, representing growth of 31% from the prior quarter and a return to a more normal operating environment. Trading fees grew 6.3 million linked quarter, driven by higher mortgage origination volumes from seasonal production and steady demand as customer engagement has rebounded following the significant market uncertainty in the first quarter. Syndication fees were another standout, growing 1.9 million linked quarter to 5.1 million, the highest quarter we've seen since 2022. Now, turning to slide 10. Before talking about the numbers, I wanted to highlight that three of the business activities shown on this page posted record revenue during the quarter, including our fiduciary and asset management, transaction card, and deposit service charges. Fiduciary and asset management revenue grew $3 million, reflecting higher trust and mutual fund fees, along with seasonal increases in tax preparation fees. I think it's also worth emphasizing the stable stream of earnings you get from this business. Over the last 10 years, the wealth management business has achieved a compounded annual growth rate for revenue of approximately 8%. AUMA increased $3.9 billion linked quarter to $117.9 billion, reflecting increased market valuations and continued new business growth. This is another record quarter for AUMA. Transaction card revenue increased 2.5 million from first quarter. Excellent performance this quarter was supported by disciplined pricing strategies, targeted customer acquisition efforts, and a seasonal uplift in transaction activity. Deposit service charges grew 1 million linked quarter. This line has shown sustained growth over the past two years driven by our commercial treasury services. And now, I'll hand the call over to Marty to cover the financials. Thank you, Scott.