BOK Financial Corporation

Greetings, welcome to BOK Financial Corporation's third quarter 2025 earnings conference call. As a reminder, this conference is being recorded. If you would like to ask a question, please press star one to enter the queue. If you would draw your question, simply press star one again. I would now like to turn the presentation over to Heather King. of Investor Relations for BOK Financial Corporation. Please proceed.

Good afternoon, and thank you for joining our discussion of BOK Financial's third quarter 2025 financial results. Our CEO, Stacey Kynes, will provide opening comments and cover the loan portfolio and related credit metrics. Scott Brower, Executive Vice President of Wealth Management, will cover our fee-based results And our CFO, Marty Gruntz, will then discuss financial performance for the quarter, as well as 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 Stacey Kimes, who will begin on slide four.

Thank you, Heather. We appreciate you joining the call this afternoon. We are pleased to report earnings of $140.9 million, or EPS, of $2.22 per diluted share for the third quarter. On our last quarterly call, I spent a lot of time talking about momentum. This quarter, we built on that progress and remained confident in the trajectory we're on and the solid foundation we've established for future growth. During the quarter, we delivered broad-based growth across our loan portfolio, with total outstanding balances up 2.4% sequentially. adding almost $1.2 billion in outstanding loan balances over the past two quarters. Our core CNI portfolio posted strong results for the second consecutive quarter, while specialized businesses remained stable. ERE balances expanding meaningfully as commitments from late 2024 and early 2025 have continued to fund up during their construction life cycles. Importantly, this momentum is independent of our mortgage finance launch, which began generating funding in the third quarter, with more meaningful outstandings expected during the fourth quarter. The interest margin continued to expand this quarter, increasing 11 basis points. We believe the key elements are in place to sustain strength in this area, regardless of whether the Fed cuts rates faster or slower than expected. Our strong liquidity profile, with a loan-to-deposit ratio in the mid-60s percent range, provides strategic flexibility. Going into this interest rate cutting cycle with a strong liquidity profile should enable us to achieve effective pricing outcomes. This positions us well to build upon our already attractive early cycle total liability beta. Our balance sheet remains relatively neutral to interest rate risk, which is consistent with our long-held philosophy of managing rate risk. This neutral positioning helps protect margin whether cuts are more or less aggressive than anticipated. Importantly, while we are neutral to interest rates, we are not neutral to the shape of the yield curve. Current market implied forward suggests the yield curve will continue to steepen over the next 12 months. This should provide a further tailwind to margin. Fee income was another solid contributor to overall performance this quarter, growing 3.6% sequentially. We recognized a record quarter for investment banking revenue, bolstered by municipal bond underwriting activity, a key strength in our fee income and advisory business. We also saw significant growth in AUMA this quarter, reaching more than $122 billion. Our capital levels remained peer leading and were further reinforced this quarter as TCE grew to 10.1% and CET1 reached 13.6%. We repurchased over 365,000 shares at an average price of $111 per share during the quarter. This reflects our continued commitment to providing value to our shareholders. Credit quality continues to be a core strength for us. We remain well-reserved with a combined allowance representing a healthy 1.32% of outstanding loans. Chris-sized and classified levels remain well below their pre-pandemic levels, reflecting our disciplined approach to risk management. Slide six provides a closer look at our loan portfolio. Total outstanding loans grew 2.4% this quarter, led by growth in our core C&I portfolio, commercial real estate, and loans to individuals. Our core C&I loan portfolio, which represents our combined services and general business portfolios, grew 1.4% quarter over quarter. Our specialty lending portfolio consisting of our energy and healthcare books increased slightly this quarter, with growth in healthcare loans partially offset by contraction in the energy portfolio. Healthcare loans increased 1.8% driven by strong origination activity, particularly within the senior housing space. The growth was not limited to outstanding balances. We saw a notable rise in commitments, reinforcing our confidence in long-term sustainable growth in this portfolio. This is despite normal refinancing churn. Both of our specialized lending books continue to demonstrate resilience, supported by healthy pipelines that indicate sustained performance ahead. Our CRE business increased 4.2% quarter over quarter, with growth curving multifamily, industrial, office, retail, and construction. We expect growth and outstanding balances to continue for the remainder of the year as our commitments established in the previous few quarters fund up. We remain well below our internal concentration limits on this portfolio. Let's move to slide seven. I'll keep this brief. Credit quality continues to be very strong. MPAs not guaranteed by the U.S. government decreased $7 million to $67 million. The resulting non-performing assets to period loans and repossessed assets decreased four basis points to 27 basis points. Committed criticized assets increased this quarter, but remained very low relative to historical standards. We had net charge-offs of $3.6 million during the quarter, averaging two basis points over the last 12 months. Importantly, the limited charge-offs we've seen recently show no patterns or concentrations that raise concerns about specific business lines or geographies. Looking ahead, we expect net charge-offs to remain well below historical norms. We took a provision of $2 million this quarter, primarily reflecting loan growth. Our combined allowance for credit losses is $328 million, or 1.32% of outstanding loans, which is a healthy reserve level. Our exposure to NDFIs is approximately 2% of total loans. We're the vast majority in the two highest credit quality subcategories, subscription lines and residential mortgage warehouse lines. Exposure outside of these categories is very granular, with an average loan size of $8 million. We have no credit exposure to companies recently publicized. Our strong performance in the credit space speaks volumes about our disciplined approach. We've built a strong reputation through consistent execution and excellence in credit over time. I'll now turn the call over to Scott.