Company: BOKF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000875357-25-000045
Chunk: 20

Company: BOK FINANCIAL CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 20
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2025, a $126 million decrease compared to March 31, 2025, which was driven by elevated levels of payoff activity in the early portion of the second quarter.

Approximately $2.1 billion of energy loans were to oil and gas producers, a $167 million decrease compared to March 31, 2025. The majority of this portfolio is first lien, senior secured, reserve-based lending, which we believe is the lowest risk form of energy lending. Approximately 72% of committed production loans are secured by properties primarily producing oil, and 28% of the committed production loans are secured by properties primarily producing natural gas.

Loans to midstream oil and gas companies totaled $372 million at June 30, 2025, a $28 million increase over March 31, 2025. Loans to borrowers that provide services to the energy industry totaled $231 million at June 30, 2025, an increase of $16 million compared to the prior quarter. Loans to other energy borrowers, including those engaged in wholesale or retail energy sales, totaled $39 million, relatively unchanged compared to March 31, 2025.

Unfunded energy loan commitments were $4.5 billion at June 30, 2025, an $88 million increase over March 31, 2025.

The healthcare sector of the loan portfolio totaled $3.8 billion, or 16% of total loans. Healthcare loans increased $19 million compared to March 31, 2025. Healthcare sector loans consist primarily of $3.1 billion of loans for the development and operation of senior housing and care facilities including independent living, assisted living, and skilled nursing. Generally we loan to borrowers with a portfolio of multiple facilities which serves to help diversify risks specific to a single facility.

The services sector of the loan portfolio totaled $3.7 billion, or 15% of total loans, a $46 million decrease compared to the prior quarter. Services sector loans consist of a large number of loans to a variety of businesses including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, specialty trade contractors, and educational services. Services sector loans are generally secured by the assets of the borrower with repayment coming from the cash flows of ongoing operations of the customer's business.

General business loans totaled $4.2 billion, or 17% of total loans, an increase of $133 million compared to the prior quarter. General business loans consist of $2