Company: BOKF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000875357-25-000027
Chunk: 28

Company: BOK FINANCIAL CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 28
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ing 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, at March 31, 2025.

The probability weighting of all scenarios in our reasonable and supportable forecast remained unchanged compared to the prior quarter. 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 $206 million in quantitative reserve, while a 100% upside case would result in $27 million less quantitative reserve at March 31, 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 fourth quarter of 2024. The allowance for loan losses was $280 million, or 1.16% of outstanding loans at December 31, 2024. Excluding residential mortgage loans guaranteed by U. S. government agencies, the allowance for loan losses was 701% of nonaccruing loans. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $332 million, or 1.38% of outstanding loans and 831% of nonaccruing loans.

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A summary of macroeconomic variables considered in developing our estimate of expected credit losses at March 31, 2025 follows:

                                      Base                                                                                                                                                                                                      Downside                                                                                                                                                                                                  Upside                                                                                                                                                                                                
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  Scenario probability weighting      50%                                                                                                                                                                                                       30%                                                                                                                                                                                                       20%                                                                                                                                                                                                   
  Economic outlook                    There are two rate cuts over the next four quarters, bringing the federal funds target range to 3.75% to 4.00% by the end of the first quarter of 2026.                                                   The Federal Reserve is forced to adopt an accommodative monetary policy compared to the base case scenario and