Good afternoon, and thank you for joining our discussion of BOK Financial's first 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, Martin 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 2 regarding any forward-looking statements made during this call. I will now turn the call over to Stacy Kymes, who will begin on slide 4.

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 continued 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 uncertainty.

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.

Fee 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 C&I portfolio, energy, and commercial real estate. Our core C&I 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 remains 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 deploy 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 7, it has become a theme for me to keep my comments short on this topic, and I'm going to do that again this quarter.

Credit quality remains strong. NPAs not guaranteed by the US government decreased $14 million to $52 million.

The resulting nonperforming assets, impaired loans, and repossessed assets decreased 6 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 3 basis points over the last 12 months. I'll reiterate that the limited charge-offs we've seen show no patterns or concentration that raise concerns about specific business lines or geographies.

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 charge-offs to remain below historical averages. No provision was required this quarter.

Provision 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.

With that, I'll turn the call over to Scott.

Thank you, Stacy. Turning to our operating results for the quarter on slides 9 and 10, fee income remained solid this quarter, despite the volatile market environment and macroeconomic backdrop of the quarter.

Fees declined $5.1 million sequentially, following of a very strong fourth quarter. Fee income totaled $209.8 million, exceeding three of the past four quarters and underscoring the underlying strength of our fee-based business in any market environment.

Total trading revenue, which includes trading-related net interest income, increased modestly to $34.7 million from $34.1 million in the prior quarter. Customer hedging revenue grew $1.1 million, as our energy customers predictably increased their hedging activity when higher short-term crude oil prices presented themselves.

Investment banking revenue, which includes investment banking and syndication fees, decreased $4.1 million after delivering two outstanding quarters. Results reflect the normal seasonality of this business, with a quieter first quarter before activity begins to build in the second quarter.

I would note that the first quarter of 2026 is the strongest first quarter syndication activity on record. This result represents a 40% increase from the same quarter a year ago.

Mortgage banking revenue grew $2 million linked quarter, with higher production and refinance activity. Turning to slide 10 to discuss our asset management and transactions businesses, fiduciary and asset management revenue delivered strong results, contributing $66.5 million to revenue.

This was the second strongest quarter on record, only surpassed by the prior quarter. As a reminder, the prior quarter included higher than usual transaction-related fees.

AUMA declined $3 billion to $123.6 billion, driven by lower market valuations and normal seasonality. Transaction card revenue continued its trend of record-setting results, contributing $32 million to revenue.

These results demonstrate the strength of this franchise, which has been created through sustained momentum and reliable execution. Taken together, our fee income performance this quarter reflects disciplined execution and the strength of these businesses, even amid shifting market conditions.

The overall foundation remains solid and continues to support consistent fee generation. With that, I'll hand the call over to Marty to cover the financials.

Thank you, Scott. Turning to slide 12, net interest income decreased $2.7 million, and reported net interest margin declined 8 basis points.

Excluding trading, core net interest income decreased $4.8 million, and core margin decreased 7 basis points. We continue to expect margin expansion over the course of 2026.

Fixed rate asset repricing and loan growth were positive drivers for this quarter and are expected to persist. However, we saw several small negatives impacting the quarter all at the same time: non-interest DDA declined, with Q1 being the seasonal low point; day count, of course; loan fees were down sequentially; SOFR spreads were abnormally wide in Q4, and we benefited from that in Q4, but spreads returned to normal in Q1 and drove some compression sequentially; funding costs for counterparty margin posted to exchanges for energy derivatives had a small negative effect; and lastly, we saw the full-quarter impact of the sub-debt issued last November.

Each of those items had 1 or 2 basis point negative effects individually, which accumulated to overcome the positives of loan growth and fixed rate asset repricing in the first quarter. Turning to slide 13, total expenses decreased $6.9 million, producing an efficiency ratio of 63.2% for the quarter.

Personnel expenses were down $11.6 million. Normal increases from payroll taxes and merit increases were more than offset by lower incentive compensation, as well as the benefits of the realignment actions we took in late 2025.

Non-personnel expense increased $4.7 million. However, during the fourth quarter, we experienced a $9.5 million benefit from the updated FDIC special assessment.

Excluding that prior quarter benefit, non-personnel expense decreased $4.8 million, largely related to lower professional fees. Slide 14 provides our outlook for full year 2026.

On loan growth, we continue to produce strong results. Our pipelines are healthy, and borrower sentiment in our footprint remains upbeat.

We expect to see loan growth near 10% for full year 2026. Our guidance for total revenue has not changed.

We expect growth to be in the mid-single-digit range. The mix of that revenue between NII and fees is somewhat rate curve dependent, as trading income can shift between the two.

Our current forecast reflects no rate cuts in 2026 versus the two cuts reflected in our prior guidance. Our NII expectations for 2026 are now slightly lower at $1.42 to $1.45 billion, and our fee income expectations are now similarly higher at $820 to $845 million.

We continue to anticipate the growth rate for expenses to be in the low single digits. This should result in a 2026 full year average efficiency ratio in the 63% area.

We expect 2026 provision expense to be in the $15 to $35 million range. Portfolio credit quality continues to be exceptionally strong, and we see no tangible evidence of credit normalization.

Our guide does allow for some amount of normalization later in the year. Lastly, I'll note that Visa announced on April 13th that its second exchange program for Visa Class B shares has officially commenced.

This allows us to monetize 50% of our remaining Visa B shares. We currently hold the equivalent of approximately 190,000 common shares, and monetizing half that position would equate to roughly a $29 million pretax benefit based on Visa's April 13th closing price of $309 per share.

While this potential gain is not reflected in our guidance, we expect to participate in the exchange and recognize a gain based on the market value at the time of the exchange or disposition. With that, I would like to hand the call back to the operator for Q&A, which will be followed by closing remarks from Stacy.

Hey, good afternoon, everyone. Thanks for taking my questions.

Maybe, Marty, if we can go back to the margin. It seems like there was just a confluence of factors this quarter that drove the compression.

I think if I heard you right, you'd expect margin kind of expansion from here. Can you just give us some details behind that, what you'd expect in terms of deposit betas as we move forward, loan pricing, and fixed asset repricing opportunities, just kind of the puts and takes as we kind of contemplate no rate cuts this year?

Thanks.

Sure, you bet. As you think about each of those factors, the one that'll be durable, has been durable and will continue to be durable, is the fixed rate asset repricing.

You'll see both bond portfolio and fixed rate loan portfolio continue to pick up spread there. Deposit competition in the market is kind of like it's been for the last few quarters.

Without rate moves, I don't think you're going to see a lot in the betas. To the extent that we have incremental rate moves, we'd still see our cumulative down beta has been 66% in deposits.

We'd continue to see that play out as it would relate to future rate moves to the extent you have them. A couple of the things that affected this quarter, the loan fees and the DDA, what's typical is for you to see growth in those two components kind of in the back half of the year.

You'll see some support there as we get into 3Q and 3-- and 4Q. Loan competition, we've seen some of that.

It's always competitive. We've seen some incrementally competitive behavior at the kind of high end of the credit size and the very strong end of credit quality spectrum in the investment grade territory.

Not enough to really move the needle in terms of this quarter. We'll kind of continue to watch that.

All those components are part of what give us confidence in the trajectory of margin. One thing I might add on margin, if you think long term, one thing you can do just really simply to give yourself some perspective on where ultimately that lands is, if you just take our 2.90 margin that we printed this quarter and take both the available-for-sale and held-to-maturity securities portfolios and rerun that at this quarter with those at their kind of mature rates where we're replacing at about 4.50.

That recasts our margin at just a little over 3.15. While it'll take some time to get there, that gives you a little perspective on what the big picture and what the long run looks like for our margin expansion story.

Marty, that's great context, very, very helpful. Maybe just as my follow-up, you mentioned the Visa Class B period has now commenced.

I think you said about half of that position would equate to roughly $29 million pretax benefit. Is the plan to monetize half of that?

Then, would you look to potentially repurchase shares with the proceeds? Or historically, you've used some of these gains to either pay down debt or repurchase shares, things like that.

Just trying to better understand what the plan of action would be for those shares. Thanks.

Our expectation is that program will officially start transacting shares later this quarter, and so we'd be able to recognize that gain in Q2. We have not yet determined exactly the disposition of what we'll do with the proceeds.

All those avenues are on the table for us. At this point, we just look forward to being able to capture that gain.

Michael, we'll let the year play out and kind of see what-- This is Stacy. We'll let the year play out and kind of see what opportunities may unfold to, if you will, reinvest those gains.

If you recall, when we did the Visa B before, there were some really kind of good opportunities in our investment portfolio to to get really good IRRs by selling securities at losses and then essentially using those gains to do that and and keep earnings relatively flat as a result of that, our run rate earnings relatively flat. That equation isn't as compelling this time.

The IRRs aren't very good relative to where they were before. Obviously, the unrealized losses in the portfolio are much smaller today than they were when we had this opportunity before.

The other piece that we've looked at historically is contributing those to our foundation. There's been some changes to kind of corporate tax policy that makes that a little bit more challenging to do and get the tax benefit for it.

For now, it's kind of a all of the above in terms of options that are on the table, including do nothing. We'll we'll see as the year unfolds, if we want to invest that gain or if we if we just don't see an opportunity that merits the return profile that that we should consider there.

All right. Appreciate the color and context.

I'll step back. Thanks.

Hey, thanks. Good afternoon, everyone.

Hey, Jon.

Hey. I guess I wanted to ask you a little bit about the loan growth environment.

Stacy, you talk a little bit about the general business drivers, just kind of the general business balance drivers. Then on energy, you used the term "not yet" in describing energy clients seeking to add production.

What do you think needs to happen there for that to show a little bit more of a growth profile?

Let me start with just, obviously, the loan growth was broad-based by geography, by loan type. That we've been exerting significant effort around core C&I, really, really excited to see that expansion continue.

We continue to invest there. We're excited about what we see the future there as well.

Obviously, it's been nice to see a little bit of a bounce back on the energy side. We kind of troughed, I think, around this time last year, and we've been stable to increasing since then.

I think if you look at where it would have to go for folks to continue to drill, I looked at rig counts. Rig counts are down from last week.

Rig counts are down by over 40 rigs from this time a year ago. My view generally is you're going to have to have out the strip, I think folks are awfully focused on the prompt month or the near spot price, but it's really the strip price out 2 to 3 years, really 3 years, that's going to create the incentive for people to drill for oil.

If you look out 3 years, oil is below 70 bucks, and I think 70 is kind of a magic number. My view is you're not going to see folks drilling unless they can lock in a return with oil above 70 out that long.

Obviously, things are volatile, things could change, and the curve has moved a lot, but I think it's more important to look at the curve 3 years out than it is to look at the prompt month in terms of what driller behavior will look like. I don't see, obviously, there you've seen the rig counts, there's no impetus right now for folks to drill given the backwardation of the curve.

That could change, but we're not seeing that today.

Yep. Okay.

Yep, fair enough. Then, Marty, for you just to follow up on Michael's deposit beta question.

You had a nice step-down in the interest-bearing deposit costs this quarter. Just curious how much more room you think you have in an environment without any further cuts.

Thanks.

There's probably still a little bit of room, but as we've been chipping away at that over the quarters, it's a declining returns sort of situation. I think that there's still a little bit more there.

Not as much as there was clearly a year ago, relative to where short rates are.

Yep. Thank you very much.

Thanks. Good afternoon.

Stacy, I wanted to ask, there's been a lot of merger activity in your markets. Are you seeing opportunities for team lift-outs, something that you've done successfully in the past?

As that's a strategy for us. Some of the periods of most rapid growth in our history have been when there's been broad dislocation that's created from mergers and acquisitions.

You have both employees and clients of those institutions who didn't choose to be a part of that institution, and so they may select to go somewhere else. What I would tell you is, obviously, we see it, it's prevalent in our footprint, and you can assume that we're being very active in attempting to prospect for both employees and customers in this environment.

Nothing specific to report today.

Okay. Then, Marty, you guys have always maintained really strong capital levels.

I was wondering, could you quantify the estimated impact and benefits from the new regulatory proposals?

Peter, we don't at this juncture have a number yet. It's definitely going to be a benefit to us both on the loan book, and particularly in the real estate secured loan book.

How we underwrite, we do pretty good job of that. Because of where our LTVs and FICOs and so forth are, that's going to be a benefit to us on RWAs in the loan book.

Then actually in the trading book, we'll get a little benefit there, too, based on our read at this point.

Okay. Got it.

Thanks for taking the questions.

Thanks, Peter.

Hi, thanks for taking the question. Back on deposits, I think you mentioned that the non-interest-bearing DDA deposits should bottom in the first quarter.

I was curious about the driver of the rebound in the second quarter and potentially the magnitude. Then should this rebound continue through the year?

David, a little bit of context on that. DDA was pretty steady for us last year, and kind of that rate-seeking behavior that you'd seen in prior years had kind of come to an end.

What's typical for us is to see a little bit of seasonal increase at the end of the fourth quarter, which we did see, and then a seasonal decrease in the first quarter, which we did see. We did also see a little bit of our commercial customers, kind of middle-market customers, just deploy some of their cash into their businesses, and that's certainly healthy for business growth.

You've had several years where you haven't really had a nice, normal history of DDA to look at, but what is typical for us and to some extent the industry is to see DDA climb more in the back half of the year than the front half as people build cash flows. That's our expectation for the year.

Great. Thanks for that.

Then on to mortgage finance. We did see balances grow nicely on a percentage basis here, and I know that you're still building that business.

Previously, you mentioned about getting to $1 billion in commitments by the end of this year. Now that the forward curve, we know what's happened there, with a higher-for-longer environment, are you still comfortable with that $1 billion commitment level?

I think so. I think what we talked about was by the end of the year being at $1 billion in commitments with roughly 50% of that committed outstanding.

Given where we are in kind of the newness of the business for us, I still feel good about that. Obviously, there's going to be some seasonality in this business.

Second and third quarter tend to be pretty good, and then just like the mortgage business. It'll track that.

We're not going to be perfect there on the estimate, but I still feel good about that.

Very helpful. Thank you.

Hey, guys. Thanks for taking the question.

Just want to go back to the liability side of the balance sheet. I think in the deck, you mentioned you moved from a wholesale deposits into more wholesale borrowings, I think, this past quarter.

Was hoping you could just expand on that strategy.

Let me talk about that a little bit, Matt. Good question.

If you go back to Q4, when you had a couple of rate cuts and some of the market spreads got a little dislocated, we were able to find some deposits, they're technically deposits, but they're wholesale in the way we get them. We put on a little over $1 billion of deposits in Q4 at prices that were actually better than wholesale funding, which is rare, but we found that opportunity, and obviously we took it.

We mentioned that would probably run off in Q1 when we talked on the call, and it did. That ran off in Q1, and so that's the main driver of the deposit decline that you see Q4 to Q1.

It's just that opportunistic wholesale deposit trade we did in Q4 running off. It's kind of that simple.

Okay. Thanks for clarifying that, Marty.

Then just, I guess, as a follow-up going forward on that same topic, how should we think about funding the loan growth from here as far as core funding, wholesale deposits versus the borrowings?

At the loan-to-deposit ratio we have, we certainly have some flexibility on how we do that. Our expectation for this year is to see loan growth be as we've guided, very good and consistent with our history.

Deposit growth probably be a little bit less than that, but we will see deposit growth this year. We can end with a little bit lower or a little higher loan-to-deposit ratio at the end of the year.

Going forward, generally speaking, loan growth and deposit growth are going to be somewhat aligned, just knowing that we've got flexibility that many others don't to let that flirt around a little bit.

Yep, makes sense. Thanks, Marty.

Hey, everybody. Thank you.

A lot of them have been answered, but I guess could you, Marty, maybe just give the dollar impact of the loan fee reduction quarter-over-quarter that you'd called out?

It's basically 2 basis points, and that's something that, quarter-over-quarter, just 2 basis points. Quarter-to-quarter, there's a little bit noise in there, but broadly speaking, that's year-over-year a good growth area for us.

Okay. Then what are the trends that you're seeing in customer hedging activity as we're going through 2Q?

Is that staying pretty strong?

This is Scott. We have.

Obviously, with the volatility in the global setting, it creates some spurts of activity on the energy side. We have seen less activity on our interest rate side, because we've had relatively stable rate environment.

We're continuing to see good demand really across all the hedging opportunities, with the biggest focus being on the energy side.

Thanks. I guess finally for me, when we look at the guidance for provision for the year, should we think that that's sort of to the next three quarters, equal contribution?

Or is that a little more back-end weighted with growth?

You don't want to get too cute with quarterly, but certainly the way the portfolio looks right now, it's very logical to think that there's a little back-end weighting there. Just the portfolio today just looks so clean, and you can always have a little bit of visibility in the next quarter or two, and after that, it's a little harder.

I think that's the right way to think about the provision.

Great, thank you.

Hey, thanks for taking my questions. Wanted to start on expenses.

They are very well-managed. It was good to see the run rate come in following some of the actions you've taken in the fourth quarter.

You touched the efficiency ratio down a little bit. Is there conviction that you could be on kind of the lower end of the stated range?

Or is it too early to tell just given some of the hiring question marks?

We feel really good about how Q1 turned out just in terms of that nice run rate that displays for what the first quarter had in expenses. Just in terms of how that plays into the second quarter, basically pretty straightforward.

The rest of the merit increase will flow through in the second quarter, but then it's an offset there for how payroll taxes play out. We're always looking to hire producers, as but those are kind of the main things you'd point to in how that transpires.

We feel pretty good about the guidance of 63 area.

Got it. Then maybe last for me, I know you mentioned oil prices factored into the ACL.

Can you just walk through how that's included in y'all's CECL model? Is there any risk that if oil prices normalize lower, it could require a catch-up provision in the future?

Here's the way to think about that. Higher oil prices means that's supportive for the energy loan book, both the valuation of the collateral and the cash flows in the business.

That's a nice positive, and that's easy to think through. There's also the impact that higher input prices to basically the bulk of the C&I book, there's a little bit of extra expense load borne by that part of the portfolio, and so we recognize that as well.

Those are kind of natural offsets if you think about how we manage the CECL book. There's probably not a whole lot of risk of, on a net basis, of that being a particular driver that would drive an adverse outcome in the future.

Got it. All right, makes sense.

Thanks for taking my questions.

Hey, good afternoon, everyone. Wanted to go back to guidance and just talking about the fee income guidance.

I get that the change is just partly a function of interest rates and how you guys account for the income. Wanted to see, it just seems like the $820 to $845 million, seasonal investment banking in the first quarter, it seems like that could have been a higher number.

Are there any other businesses that maybe you're expecting to not grow this year? Or are there any other factors in that?

Brett, this is Marty. I'd give you the following thoughts.

We feel very good about the fee business. That group, the trajectory there is really good.

We feel very confident in the history there and the outlook in really all those businesses across the board, and we can talk through each one if you want. I think it's important to think through that, for the trading business, part of that revenue stream is in the fee line, and part of that revenue stream is in the NII line.

You really kind of have to combine those two when you think about the veracity of all the fee businesses. Hopefully, that'll kind of help you think through any changes in multi-year, if you're looking at a multi-year trend.

Some of that revenue's moved into the NII line. You kind of have to recombine that when you think about that business.

Okay. Then, Stacy, you talked about producer adds and possibly adding people with disruption.

Would you guys happen to have a net producer add number for the quarter?

That's not the way we think about it. We think about adding "A" talent.

We don't have a goal around adding X number of net new producers each quarter. We have a perpetual goal of adding the best talent in every market that we're in.

Those discussions have been ongoing for years in many cases. As we have an opportunity to add talent, we do it.

If it's not the "A" talent in the market, then we don't. We don't track it that way or think about it that way, and so I don't have anything to report on that.

Okay. Fair enough.

If I could sneak in one last one, the decrease on the provisioning for the year despite a little bit better loan growth expectations. I know, Stacy, late last year we had the conversation about eventually credit will normalize, but it doesn't look like '26 was going to be that year.

Is that just better visibility that's actually the case that '26 is going to continue to be fairly benign and you're just not seeing anything at all?

The reduction is pretty small, and it's really just a reflection that we've already got one quarter behind us now. When I was in credit, I used to tell people either crystal ball is pretty good for 3 to 6 months, and then it got really foggy after that.

I think that's just a reflection that we've got one quarter in the bag, and so we just have just a little bit more visibility going forward, and so we brought the guidance down there just a little bit, but it's not that different really.

Okay. Great.

Appreciate all the color, guys.

Thank you.

To wrap up, the first quarter has set the stage with solid core operating results, diversified loan growth, resilient fee performance, excellent credit quality, and disciplined expense management. We're off to a strong start in 2026, and we're well positioned for growth as the year progresses.

We appreciate your interest in BOK Financial and your willingness to spend time with us this afternoon. Please reach out to Heather King if you have any further questions at [email protected].