Company: BOKF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000875357-25-000027
Chunk: 27

Company: BOK FINANCIAL CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 27
---
51.77                   60.57                              12.53                              22.66                          
  Provision for loan losses (annualized) to average loans                                                                                                 (0.01)                  (0.06)                             0.22                               0.17                           
  Allowance for loan losses to loans outstanding at period end                                                                                            1.18                    1.16                               1.17                               1.17                           
  Accrual for unfunded loan commitments to loan commitments                                                                                               0.36                    0.35                               0.30                               0.33                           
  Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to loans outstanding at period end      1.40                    1.38                               1.34                               1.36                           

- 24 -

Allowance for Loan Losses and Accrual for Off-Balance Sheet Credit Risk from Unfunded Loan Commitments

Expected credit losses on assets carried at amortized cost are recognized over their expected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Models incorporate base case, downside, and upside macroeconomic variables such as real GDP growth, civilian unemployment rate, commercial real estate vacancy rates, and WTI oil prices on a probability weighted basis. See Note 4 to the Consolidated Financial Statements for additional discussion of methodology of allowance for loan losses.

Non-pass grade loans, including loans especially mentioned, accruing substandard, and nonaccruing loans, decreased $70 million compared to December 31, 2024. Non-pass grade commercial real estate loans decreased $57 million and non-pass grade general business loans decreased $17 million. While nonaccruing loans increased $37 million during the quarter, loans especially mentioned decreased $83 million and accruing substandard loans decreased $23 million. A summary of outstanding loan balances by risk grade is included in Note 4 to the Consolidated Financial Statements.

No provision for credit losses was necessary for the first quarter of 2025. A worse economic outlook compared to the prior quarter was offset by decreased loan balances and further improvements in portfolio credit quality during the quarter. The allowance for loan losses totaled $279 million, or 1.18% of outstanding loans, at March 31, 2025. Excluding residential mortgage loans guaranteed by U. S. government agencies, the allowance for loan losses was 363% of nonaccru