Company: BOKF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000875357-25-000045
Chunk: 10

Company: BOK FINANCIAL CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 servicing revenue rates      0.31      0.30       1      bp      0.30      0.29      bp  

1 Primary rates disclosed in Table 5 above represent rates generally available to borrowers on 30 year conforming mortgage loans.

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Net Gains and Losses on Other Assets, Securities, and Derivatives

Other gains (losses), net, were a net gain of $8.1 million for the second quarter of 2025, compared to a net loss of $725 thousand in the prior quarter. Net gains on merchant banking investments were $5.2 million and net gains on investments related to deferred compensation were $3.4 million for the second quarter of 2025. During the second quarter of 2025, a loss of $956 thousand was realized on the redemption of our subordinated debentures. The prior quarter included a net gain on merchant banking investments of $678 thousand and a net loss of $1.1 million on investments related to deferred compensation.

As discussed in the Market Risk section following, the fair value of our MSRs changes in response to changes in primary mortgage loan rates and other assumptions. We attempt to mitigate the earnings volatility caused by changes in the fair value of MSRs by designating certain financial instruments as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSRs.

Table 6 - Gain (Loss) on Mortgage Servicing Rights

(In thousands)

                                                                                                                              Three Months Ended                                                   Six Months Ended                              
                                                                                                                              June 30, 2025                        Mar. 31, 2025                   June 30, 2025                                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Gain (loss) on derivatives, net                                                                                             $                         5,230      $                    9,183      $                       14,413      (12,841)  
  Gain (loss) on fair value option securities, net                                                                                                      1,112      325                                                      1,437                
  Gain (loss) on economic hedge of mortgage servicing rights, net                                                                                       6,342                           9,508                              15,850      (13,240)  
  Change in fair value of mortgage servicing rights                                                                                                   (5,019)                         (7,240)                            (12,259)