BOK Financial Corporation

To withdraw your question, press star one again. 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. Heather, please proceed.

Good afternoon, and thank you for joining us to discuss BOK Financial's third quarter 2026 results. Our CES, Stacy Kymes, will provide opening remarks cover the loan portfolio and related credit metrics. Scott Grauer, Executive Vice President of Wealth Management, will review our fee-based businesses. Our CFO, Marty Grunst, will then walk through our 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 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 $159.9 million, or EPS, of $2.64 per diluted share for the third quarter, reflecting another period of solid performance despite a challenging interest rate environment. Four key factors drove our results. First, quality loan growth. Loan growth remained a standout contributor again this quarter. Total loans grew 2.4% late quarter, representing annualized growth of 9.5% and grew 11.5% year-over-year. Second, meaningful margin expansion. Net interest margin increased 9 basis points to 3%. We continue to benefit from the repricing of fixed-rate assets. Third, disciplined expense management. We continue to invest where we see attractive opportunities for long-term growth and prudently manage our expense base. We are not managing the company for one quarter. We are focused on producing sustainable growth and profitability over time. And fourth, exceptional credit quality. We continue to see very strong performance across the portfolio with no meaningful deterioration that would change our view about the underlying credit environment. Together, these strengths demonstrate the durability of our business model. They reflect the benefits of decisions we have made over many years to diversify our business, manage risk prudently, and position the company to perform well across a wide range of economic environments. I also want to spend a moment on the rate environment. It highlights an important differentiator for BOK Financial. We have not seen a 10-year treasury yield at these levels since 2007. This rate move also happened very quickly with similar velocity to what the market experienced in 2023 Our securities portfolio has a relatively short duration of about three years, which helps limit our exposure to changes in interest rates. We've managed the balance sheet this way for decades, maintaining risk limits around tangible common equity and tangible common equity and stress. As part of that discipline, we regularly monitor how our capital would change if interest rates across the yield curve rose by 300 basis points. Our current TCE is 9.2%. well above the TCE for the broader KRX index. This is by design and reflects how we have managed the balance sheet over many years. That consistency gives us flexibility to continue serving clients and investing in growth across a range of market conditions. The higher rate environment is a headwind for our more rate sensitive fee based businesses, particularly fixed income trading and mortgage banking. Industry activity levels declined meaningfully during the quarter and our results reflected that environment consistent with what other market participants experienced. We view those businesses through the cycle where they provide an important source of diversification to our overall earnings profile. And now we'll cover our loan portfolio in more detail starting on slide six. Loan growth remains a particular source of strength. We have invested heavily in our people, markets, and capabilities and those investments are now contributing across the organization. As I mentioned before, total outstanding loans grew $646 million or 2.4% this quarter and were up 11.5% year over year. Importantly, this growth continues to be well balanced across our businesses and markets. Our core C&I loan portfolio, which represents our combined services and general business portfolios, grew slightly link order but is up 10.9% over the prior year. Energy Lending experienced an outstanding quarter, increasing $264 million or 8.6%, driven by both higher utilization across existing relationships and solid new production. This is a business where we have deep expertise and longstanding client relationships. The elevated payout activity we experienced last year was largely driven by industry consolidation, and an accommodating debt capital markets environment. As market activity normalized, volumes returned and we are benefiting from the strength of our relationships and reputation in the sector. Healthcare loans declined 1.4% this quarter, but we're still up 3.8% year over year with healthy future pipelines. Mortgage finance also contributed meaningfully to loan growth during the quarter with current outstanding balances of $589 million, an increase of $137 million. Active warehouse commitments increased more than $500 million during the quarter to $1.4 billion, and loans funded on our warehouse lines grew 23%. This is a remarkable result given the challenging U.S. mortgage origination environment. Our commercial real estate portfolio grew 4.2% over the prior quarter. Growth in this portfolio was broad-based, spanning industrial, retail, and other real estate loans. We remained well below our internal concentration limits. Moving to slide seven, once again, credit quality remains strong. Non-performing assets not guaranteed by the U.S. government increased $3.3 million to $58 million. The resulting non-performing assets to period and loans and repossessed assets increased one basis point to 21 basis points. Committed criticized assets increased this quarter but remained very low relative to historical standards. We had net charge-offs of $886,000 during the quarter, averaging two basis points over the last 12 months. We continue to have only de minimis exposure to private credit facilities and no direct lending to data centers. Consistent with the prior quarter, no provision was required. Improvement in economic forecast assumptions was offset by the impact of loan growth. Our combined allowance for credit losses is a healthy $322 million, are 1.16% of outstanding loans. In all, credit quality remains exceptionally strong, with no meaningful signs of broad-based stress emerging in the portfolio. Over time, we would expect credit performance to normalize. However, normalization should not be confused with deterioration. Our underwriting standards, portfolio diversification, and risk management approach are designed to perform throughout the credit cycle. and we continue to feel very good about the quality of the book. And with that, I'll turn it over to Scott.