Company: BOKF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000875357-25-000045
Chunk: 28

Company: BOK FINANCIAL CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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, 2025. Excluding residential mortgage loans guaranteed by U. S. government agencies, the allowance for loan losses was 383% of nonaccruing loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $330 million, or 1.36% of outstanding loans and 456% of nonaccruing loans, at June 30, 2025.

There was a modest improvement in the economic outlook during the quarter, but a heightened level of uncertainty in the economic environment resulted in an increase in the downside scenario probability weighting to 35% from 30% in the prior quarter. The upside probability weighting decreased to 15% from 20% in the prior quarter. There was no change in the base case scenario weighting. The sensitivity to management's economic scenario weighting may be quantified by comparing the results of weighting each economic scenario at 100%. For example, compared to a 100% base case scenario, a 100% downside case would result in an additional $214 million in quantitative reserve, while a 100% upside case would result in $15 million less quantitative reserve at June 30, 2025. Such sensitivity calculations do not necessarily reflect the nature and extent of future changes in the related allowance.

No provision for credit losses was necessary for the first quarter of 2025. The allowance for loan losses was $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 nonaccruing loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $331 million, or 1.40% of outstanding loans and 431% of nonaccruing loans.

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A summary of macroeconomic variables considered in developing our estimate of expected credit losses at June 30, 2025 follows:

                                      Base                                                                                                                                                                                                      Downside                                                                                                                                                                                                  Upside                                                                                                                                                                                                
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