Company: BOKF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000875357-25-000027
Chunk: 18

Company: BOK FINANCIAL CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 underlying loans are fully guaranteed. Commercial mortgage-backed securities have prepayment penalties similar to commercial loans.

A primary risk of holding residential mortgage-backed securities comes from extension during periods of rising interest rates or contraction in the form of more rapid prepayments during periods of falling interest rates. We evaluate this risk through extensive modeling of risk both before making an investment and throughout the life of the security. Our best estimate of the duration of the combined residential mortgage-backed securities portfolio held in investment and AFS securities was 3.5 years as of March 31, 2025, compared to 3.6 years as of December 31, 2024. Management estimates the duration extends to 4.2 years assuming an immediate 200 basis point upward shock. The estimated duration contracts to 2.4 years assuming a 200 basis point decline in the current rate environment. The duration of the total investment portfolio is 3.2 years, extending to 3.7 years in an upward shock of 200 basis points and contracting to 2.4 years in a down 200 basis point shock scenario. Management also regularly monitors the impact of interest rate risk on the AFS securities portfolio on our tangible equity ratio under various shock scenarios.

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Loans

The aggregate loan portfolio before allowance for loan losses totaled $23.7 billion at March 31, 2025, a decrease of $424 million compared to December 31, 2024. A decrease in commercial loans, primarily driven by energy balances, was partially offset by growth in commercial real estate loans and loans to individuals.

Table 12 - Loans

(In thousands)

                                                                    Mar. 31, 2025                      Dec. 31, 2024                                                                  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Commercial:                                                                                                                                                                         
  Healthcare                                                        $                   3,789,446      $                   3,967,533       4,149,069       4,231,058       4,245,939  
  Services                                                                              3,704,834                          3,643,203       3,573,670       3,577,144       3,529,421  
  Energy                                                                                2,860,330                          3,254,724       3,126,635       3,451,485       3,443,719  
  General business                                                                      4,048,821