BOK Financial Corporation

Greetings. Welcome to BOK Financial Corporation's fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star, then the number one on your telephone keypad. If you'd like to withdraw your question at any time, please press star one again. Thank you. And as a reminder, this conference is being recorded. I would now like to turn the presentation over to Heather King, Director of Investor Relations for BOK Financial Corporation. Please proceed.

Good afternoon, and thank you for joining our discussion of BOK Financial's fourth quarter and full year 2025 financial results. Our CEO, Stacey Combs, will provide open comments and cover the loan portfolio and related credit metrics. Scott Grauer, 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. The 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 $177.3 million, or EPS, of $2.89 per diluted share for the fourth quarter. Full-year 2025 earnings reached $578 million, or $9.17 per diluted share. This marks a record high earnings per share for both the quarter and the year. Throughout the year, we delivered solid growth and continued to invest in our strategy to create long-term, sustainable shareholder value while maintaining a strong and disciplined approach to risk management. During the year, we achieved solid loan growth, expanding loan balances by more than $1.5 billion, or 6.4%. This growth was broad-based, both in terms of geography and lending segments. After the economic pause in the first quarter of the year, loans grew at an annualized rate of 11% over the last nine months of the year. We delivered growth in net interest income and expanded our net interest margin in every quarter of 2025. We maintained the loan to deposit ratio in the mid 60% range all year, Our fee income engine, which continues to be a differentiator for us, produced consistent, strong results once again this year, contributing $801 million to revenue. This represents a peer-leading 38% of total revenue. Our credit quality remains excellent. We've maintained a combined allowance of 1.28% of outstanding loans, and our annualized net target rate for the year was only three basis points. Our strong performance across business lines has been recognized by the market, as we have outperformed the KBWF Regional Bank Index in total shareholder return over a 1, 3, 5, and 10-year period by 7%, 3%, 42%, and 51%, respectively. I'm proud of our performance this year and have strong confidence in the path ahead for our organization. With that, I will turn attention to our fourth quarter results. As I discuss the quarter, you'll hear me emphasize broad-based growth. This is a testament to the work we've done over many years to position ourselves to deliver exceptional value to our shareholders. During the quarter, outstanding loan balances grew $786 million, or 3.2% sequentially. The growth was broad-based, as our core CNI portfolio and our healthcare and energy portfolios all posted strong results this quarter, expanding 5.3% in total. Growth in Texas specifically was exceptional, representing $561 million of total fourth quarter growth. Net interest margin expanded again this quarter, increasing seven basis points. Fee income was very strong, exhibiting again broad-based growth across our various lines of business. Total fee income increased 5.1% sequentially. I'd like to call out our fiduciary and asset management and transaction card lines of business. Both posted not only record quarters for revenue, but also record full-year results. AUMA continued its impressive trajectory this quarter, surpassing $126 billion and setting a new record high. Our capital levels remain robust, with tangible common equity of 9.5% and CEC1 at 12.9%. Given these strong capital levels, we also had the opportunity to return value to shareholders an average price of $107.99 per share during the quarter. Slide 6 provides a closer look at our loan portfolio. Total outstanding loans grew 3.2% this quarter. Our core C&I loan portfolio, which represents our combined services and general business portfolios, grew 5.5% sequentially. Core C&I loan growth is inherently relationship-driven, requiring time, focus, and disciplined execution. We've seen three consecutive quarters of growth in this business, reflecting the progress from those sustained efforts. Healthcare loans increased 3.3%, driven by strong origination activity and funding of prior commitments. Healthcare production remains robust, and the cyclical payoffs we experienced in the first and second quarters of this year have moderated to more typical levels. Energy loans posted strong results, growing more than $200 million, This growth was driven primarily by higher utilization rates across the existing portfolio, as well as solid new loan origination. This segment experienced higher than normal payout activity during the early parts of the year, largely driven by industry consolidation. This activity has moderated, resulting in more normal payout rates during the quarter. Our commercial real estate business decreased 1.4% compared to the prior quarter, but has increased 12.1% on a year-over-year basis. This small quarter-over-quarter decline was driven by a moderate level of normal refinancing into the permanent market. We saw a strong quarter of originations in commercial real estate and have a robust pipeline in this space. Let's move to slide seven. Consistent with the last couple of quarters, credit quality is excellent, so my comments will be briefed. Non-performing assets not guaranteed by the U.S. government decreased $847,000 to $66 million. The resulting non-performing assets to period in loans and repossessed assets decreased one basis point to 26 basis points. Committed criticized assets increased this quarter but remained very low relative to historical standards. We had net charge-offs of $1.4 million during the quarter, averaging three 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. Over the long term, we do expect that credit normalization will occur. In the short term, we expect next charge-offs to remain below historical norms. No provision was required this quarter, as the impact of loan growth was balanced by an improvement in the economic forecast. Our combined allowance for credit losses is a healthy $327 million, or 1.28% of outstanding loans. Our results in credit continue to reflect a highly disciplined approach supported by consistent execution and a strong track record over time. And now I'll turn the call over to Scott.