Company: BOKF
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000875357-25-000013
Chunk: 226

Company: BOK FINANCIAL CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 226
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 Loss on available for sale securities, net(45,828)(30,636)Denominator for efficiency ratio$2,105,374 $2,101,576 Efficiency ratio64.32 %62.76 %

72

December 31,20242023Information on net interest income and net interest margin excluding trading activities:Net interest and dividend income$1,210,758 $1,272,180 Less: Trading activities net interest income7,583 (14,202)Net interest and dividend income excluding trading activities1,203,175 1,286,382 Add: Tax-equivalent adjustment9,147 8,811 Tax-equivalent net interest income excluding trading activities$1,212,322 $1,295,193 Average interest-earning assets$45,538,838 $42,975,672 Less: Average trading activities interest-earning assets5,683,573 4,559,012 Average interest-earning assets excluding trading activities$39,855,265 $38,416,660 Net interest margin on average interest-earning assets2.65 %2.93 %Net interest margin on average trading activities interest-earning assets0.13 %(0.31)%Net interest margin on average interest-earning assets excluding trading activities3.01 %3.31 %

Explanation of Non-GAAP Measures

The tangible common equity ratio and return on average tangible common equity are primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities, less intangible assets and equity that do not benefit common shareholders. The adjusted tangible common equity ratio also includes unrealized gains and losses on the investment portfolio. These measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income in shareholders' equity.

Pre-provision net revenue is a measure of revenue less expenses and is calculated before provision for credit losses and income tax expense. This financial measure is frequently used by investors and analysts and enables them to assess a company's ability to generate earnings to cover credit losses through a credit cycle. It also provides an additional basis for comparing the results of operations between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.

The efficiency ratio measures the Company's ability to use its assets and manage its liabilities effectively in the current