BOK Financial Corporation

Greetings. Welcome to BOK Financial Corporation's second 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 during this time, simply press star followed by the number one in your telephone keypad. If you would like to draw your question, press star one again. Thank you. 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 Corporations. Please proceed.

Good afternoon, and thank you for joining our discussion of BOK Financial's second quarter 2026 financial results. Our CEO, Stacy Kymes, will provide opening comments, 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 Grunst, 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 Stacy Kymes, who will begin on slide four.

Thank you, Heather. We appreciate you joining the call this afternoon. We are pleased to report earnings of $176.5 million or EPS of $2.92 per diluted share for the second quarter. Adjusted for the net gain related to the exchange of the B2B shares and a small amount of repositioning in the securities portfolio, earnings were $156.5 million or $2.59 per share. This was an excellent quarter and one that reflects how we are positioning the franchise for continued growth. We delivered strong results, including record quarterly loan growth, record quarterly fiduciary and asset management revenue, continued expense discipline, with credit remaining outstanding. During the quarter, total loans grew 3.4% sequentially or 13.7% on an annualized basis. This resulted in a quarterly increase of $896 million, representing record new loan production in a single quarter of the company's history. Year-over-year, loans have grown an impressive 11.5%. Importantly, nearly 70% of year-over-year growth has been in our CNI portfolio. This reflects both the strength of our customer activity and the benefits of the investments we've made over time. Our fee-based businesses contributed meaningfully with record quarterly revenue in our fiduciary and asset management business. During the last call, we discussed aligning expenses with market opportunities and customer needs Expenses this quarter remained well controlled, with total operating expenses, excluding deferred compensation, being down slightly. Notably, this was achieved while making significant investments in talent during the quarter. Capital levels remained very strong, with tangible common equity at 9.6% and CET1 at 12.9%. Finally, we've talked over the past year about disruptions in the markets we serve. Periods like this tend to create opportunities for organizations like ours, those that are strong, stable, and focused on long-term growth. Historically, these environments have represented some of our best opportunities. The current period represents another such opportunity. We've added more than 25 new teammates as a result of the disruption across our markets. More than 20 of those additions were in Texas, a market where we've been deeply involved for decades. We also saw success hiring in our Colorado and Arizona markets. This talent acquisition strengthens our ability to serve customers across the spectrum, from large corporate relationships to small business. Importantly, the loan activity this quarter was independent of these additions. As we've discussed, C&I is a longer sales cycle, and we expect to see the benefits build over time. We're excited to welcome this talent, and we're confident in the role they will play in driving future results. And now I will cover our loan portfolio in more detail starting on slide six. As I mentioned before, total outstanding loans grew nearly $900 million, or 3.4% this quarter, and we're up 11.5% year over year. This growth was by base across our business line and our footprint. Our core C&I loan portfolio, which represents our combined services and general business portfolios, grew 3.9% sequentially and is up 11.1% year over year. This level of growth in core C&I loans doesn't happen by accident. Our growth is a result of a disciplined, long-term strategy centered on investing in top talent and deepening customer relationships. As we've often said, growth follows relationships. The momentum we're seeing today is a direct reflection of the trust we've earned from our customers. Out-of-care loans increased 3.2%. As we indicated last quarter, activity levels and pipeline strength in this segment were exceptionally strong entering the second quarter. The growth we're reporting today reflects the successful execution of opportunities that have been building for some time. Energy loans grew again this quarter, increasing 1.6%. Mortgage finance also contributed meaningfully to loan growth during the quarter, with current outstanding balances of $452 million, an increase of $224 million, As of quarter end, we had active warehouse facilities of $870 million in commitments. This business continues to build momentum and achieved an important milestone during the quarter by reporting its first month above breakeven. Operating at a net profit less than a year after funding our first loan is a notable accomplishment by the team. Our CRE portfolio grew marginally compared to the prior quarter, but is up 6.6% year over year. Moving to slide seven, once again, credit quality remains excellent. MPAs not guaranteed by the U.S. government increased 2.8 million to 55 million. The resulting non-performing assets to period in loans and repossessed assets was consistent with the prior quarter at 20 basis points. Committed criticized assets decreased this quarter, remaining very low relative to historical standards. We had net charge-offs of just 500,000 during the quarter, averaging three basis points over the last 12 months. Once again, the limited charge-offs we've seen show no patterns or concentrations that raise concerns around specific business lines or geographies. And we continue to have no exposure to private credit facilities. In the long term, we expect credit metrics to normalize. However, we expect net charge-offs to remain below historical averages in the near term. consistent with the prior quarter, no provision was required. Improvement in economic forecast assumptions were offset by the impact of loan growth. Our combined allowance for credit losses is a healthy $323 million, or 1.19% of outstanding loans. Overall credit performance this quarter remains very strong. And with that, I'll turn the call over to Scott.