Company: BOKF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000875357-25-000057
Chunk: 46

Company: BOK FINANCIAL CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 2
Chunk 46
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 during the reporting period.

The Company monitors the accuracy of internal VaR models and modeling processes by back-testing model performance. The Company updates historical data used by the VaR model on a regular basis, and model validators independent of business lines perform regular validations to assess model input, processing and reporting components. These models are required to be independently validated and approved prior to implementation.

Limit Structure

Beyond VaR and SVaR described above, Management also performs a sensitivity analysis to measure market risk from changes in interest rates on its trading portfolio. Applicable interest rates are shocked up and down 50 basis points, calculating an estimated change in fair value, net of economic hedging activity that may result. The Board has approved a $14 million market risk limit for the trading portfolio, net of economic hedges.

Table 28 - Trading Sensitivity Analysis

(In thousands)

                  Three Months Ended                                                                                      
                  Sep. 30, 2025                                                  Sep. 30, 2024                            
                  Up 50 bp                                                       Down 50 bp                               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Average 1       $                       (2,151)        (545)      (1,241)      $                  (2,680)        4,470  
  Low 2                                     3,454        2,982        3,602                           4,622       11,070  
  High 3                                  (6,472)      (7,841)      (7,841)      (379)              (8,243)      (3,120)  
  Period End                              (1,694)        2,982      (1,694)                           1,164        1,309  

1 Average represents the simple average of each daily value observed during the reporting period.

2 Low represents least risk of loss in fair value measured as the smallest negative value or the largest positive value observed daily during the reporting period.

3 High represents the greatest risk of loss in fair value measured as the largest negative value or the smallest positive value observed daily during the reporting period.

Model Risk Management

BOK Financial has an internal independent Model Risk Management staff that validates models to verify they are conceptually sound, computationally accurate, are performing as expected, and are in line with their intended use. Model Risk Management staff also enforces the Company's model risk governance program that defines roles and responsibilities, including the authority to levy findings requiring remediation and to