Why Is BOK Financial (BOKF) Down 0.6% Since Last Earnings Report?

A month has gone by since the last earnings report for BOK Financial (BOKF). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is BOK Financial due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for BOK Financial Corporation before we dive into how investors and analysts have reacted as of late.BOK Financial's Q2 Earnings Beat on NII & Loan GrowthBOK Financial's second-quarter 2025 adjusted earnings per share of $2.19 per share surpassed the Zacks Consensus Estimate of $1.98. However, the bottom line declined 13.8% from the prior-year quarter.The results benefited from higher net interest income, a rise in loan balance, and the absence of provisions. However, lower deposit balance and elevated expenses were the major undermining factors.Net income attributable to shareholders was $140 million, declining 14.5% year over year.Revenues Decline, Expenses UpQuarterly net revenues of $535.2 million (net interest income and total other operating revenues) decline 3.6% year over year. However, the top line surpassed the Zacks Consensus Estimate of $517.9 million.Net interest income was $328.2 million, up 10.8% year over year. The net interest margin expanded 24 basis points to 2.80%.Total fees and commissions were $197.3 million, down 1.3% year over year. The fall was mainly due to lower brokerage and trading revenues.Total other operating expenses were $354.5 million, up 5.3% year over year. This rise mainly resulted from higher personnel expenses.The efficiency ratio rose to 65.42% from the prior year’s 59.83%. A rise in the efficiency ratio indicates a deterioration in profitability.Loan Balance Rise, Deposits DeclineAs of June 30, 2025, total loans were $24.3 billion, up 2.5% from the prior quarter. The increase was primarily due to growth in commercial real estate loans and loans to individuals.Total deposits slightly decline on a sequential basis to $38.2 billion. The decline was driven by reduced demand and savings.Credit Quality ImprovesNon-performing assets were $81 million or 0.33% of outstanding loans and repossessed assets as of June 30, 2025, which decreased from $93 million or 0.38% in the prior-year quarter.The company recorded nil provisions for credit losses compared with $8 million in the prior-year quarter. BOKF recorded net charge-offs of $561 thousand, down 91.9%.The allowance for loan losses was 1.14% of outstanding loans as of June 30, 2025, which declined 3 bps from the year-ago quarter.Capital Ratios Improve & Profitability Ratios DeclineAs of June 30, 2025, the common equity Tier 1 capital ratio was 13.59%, up from 12.10% as of June 30, 2024. The tier 1 capital ratio and total capital ratio were 13.60% and 14.48% compared with 12.11% and 13.25%, respectively, as of June 30, 2024.At the end of the second quarter, return on average equity was 9.70%, down from the year-earlier quarter’s 12.79%. Return on average assets was 1.07%, down from 1.29% a year ago.2025 OutlookThe company expects loan growth in the mid to upper single-digit range from $24.1 billion in 2024.Management expects NII to be $1.33–$1.38 billion in 2025, up from $1.2 billion recorded in 2024.Total fees and commission revenues are anticipated to be in the range of $775–$825 million.Non-interest expenses (excluding FDIC special assessment) are likely to increase at a mid-single-digit rate from $1.37 billion in 2024.Total revenues are expected to grow in mid to upper-single-digit from $2.05 billion in 2024.Management expects the efficiency ratio to be nearly 65%. The metric is expected to decline over the year as revenue grows.Provisions are now expected to remain below the $18 million recorded in 2024, compared with the earlier guidance of $20–$40 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in fresh estimates.VGM ScoresCurrently, BOK Financial has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook BOK Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BOK Financial Corporation (BOKF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks