BOK Financial Corporation

Greetings. Welcome to BOK Financial Corporation's first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one. Thank you. As a reminder, this conference call 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 first quarter 2026 financial results. Our CEO, Stacey Kimes, will provide opening comments 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 Grunst, 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 reported earnings of $155.8 million, or EPS, of $2.58 per diluted share for the first quarter. What stood out this quarter was the consistency of execution across the company and how our teams continue to build on the momentum we established in 2025. During the quarter, total loans grew $536 million, or 2.1% sequentially. That growth was well distributed across the portfolio. We saw strong momentum last year, and we're encouraged to see that continue. Pipelines remain solid, and business activity across our footprint and customer base has been constructive, even with more macroeconomic uncertainties. Growth was also well balanced geographically across our franchise, with Texas growing $208 million, or 8% on an annualized basis, Oklahoma posting growth of $163 million, or approximately 9% annualized, and Arizona increasing $236 million. Our fee-based businesses also performed well, even in an environment with elevated uncertainty and a rapidly changing macroeconomic backdrop. The revenue exceeded three of the past four quarters, reflecting the diversification and underlying strength of those platforms. Expenses declined meaningfully this quarter, reflecting our continued focus on managing our core cost structure. Over the past several quarters, we've worked to better align expenses with market opportunities and customer needs. This quarter illustrates that progress. Expenses were down $6.9 million, and we posted an efficiency ratio of 63.2%. Importantly, this quarter provides a clean view of a more typical expense profile, with prior actions now embedded and temporary items less meaningful. Capital levels remain very strong, with tangible common equity at 9.3% and CET1 at 12.6%. Slide 6 provides a closer look at our loan portfolio. Total outstanding loans grew 2.1% this quarter. with strong growth across our core CNI portfolio, energy, and commercial real estate. Our core CNI loan portfolio, which represents our combined services and general business portfolios, grew 2.1% sequentially. This is the fourth consecutive quarter of growth in this portfolio, reflecting long-term sustained customer relationships. Healthcare loans decreased 1.3%. Loan production in this segment remained at record highs with a very strong pipeline. This business has also supported our fee income lines with strong syndication fees generated during the quarter. The reduction in loan balances this quarter is primarily related to cyclical payoff activity. We believe we are well positioned to grow this portfolio throughout the remainder of the year. Energy loans grew this quarter, increasing 4.3%. This marks another reversal of the payoff trends we discussed last year. We are not currently seeing clients seeking to add production capacity yet. Our CRE business increased 3.7% compared to the prior quarter. We remain well within our concentration limits for this segment, which allows us to be selective about opportunities and to avoid capital where structure, terms, and returns make sense. Mortgage finance loans totaled $228 million, an increase of $50 million from the fourth quarter. We are happy with the progress this business is making, but it's important to note that the loan growth exhibited in the first quarter was driven by our existing businesses. Moving to slide seven, it has become a thing for me to keep my comments short on this topic, and I'm going to do that again this quarter. Credit quality remains strong. MPAs not guaranteed by the U.S. government decreased $14 million to $52 million. The resulting non-performing assets to period in loans and repossessed assets decreased six basis points to 20 basis points. Committed criticized assets decreased this quarter, remaining very low relative to historical standards. We had net charge-offs of just $1.9 million during the quarter, averaging three basis points over the last 12 months. I'll reiterate that the limited charge-offs we've seen show no patterns or concentrations that raise concerns about specific business lines or geographies. And I would also note proactively that we have virtually no exposure to private credit facilities. Over the long term, we do expect credit metrics to normalize. In the near term, we continue to expect net charges to remain below historical averages. No provision was required this quarter. Our provisions benefited from the favorable impact of higher projected oil prices in our energy portfolio and improved overall credit quality. This was offset by loan growth and a modest downward revision to economic forecast assumptions. Our combined allowance for credit losses is a healthy $323 million, or 1.23% of outstanding loans. Overall credit performance this quarter was exceptionally strong. And with that, I'll turn the call over to Scott.