Company: BOKF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000875357-25-000027
Chunk: 43

Company: BOK FINANCIAL CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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─────────────────────────────
  MSR Asset         $                    12,469      $               (15,701)      $                     9,730      (11,956)  
  MSR Hedge                            (14,039)                        14,470                         (12,269)        12,537  
  Net Exposure      $                   (1,570)      $                (1,231)      $                   (2,539)           581  

Trading Activities

The Company bears market risk by originating RMHFS. RMHFS are generally outstanding for 60 to 90 days, which represents the typical period from commitment to originate a loan to sale of the closed loan to an investor. Primary mortgage interest rate changes during this period affect the value of RMHFS commitments and loans. We use forward sale contracts to mitigate market risk on all closed mortgage loans held for sale and on an estimate of mortgage loan commitments that are expected to result in closed loans.

A variety of methods are used to monitor market risk of mortgage origination activities. These methods include daily marking of all positions to market value, independent verification of inventory pricing, and revenue sensitivity limits.

Management performs a stress test to measure market risk due to changes in interest rates inherent in the mortgage production pipeline. The stress test shocks applicable interest rates up and down 50 basis points and calculates an estimated change in fair value, net of economic hedging activity, that may result. The Board has approved a $3 million market risk limit for the mortgage production pipeline, net of forward sale contracts.

- 38 -

Table26 - Mortgage Pipeline Sensitivity Analysis

(In thousands)

                  Three Months Ended                                                                                        
                  Mar. 31, 2025                           Dec. 31, 2024                      Mar. 31, 2024                  
                  Up 50 bp                Down 50 bp      Up 50 bp           Down 50 bp      Up 50 bp           Down 50 bp  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Average 1       $                       $               $                  $               $                  $           
  Low 2           (41)                    46              (49)               (17)            93                 126         
  High 3          (207)                   (161)           (316)              (241)           (240)              (151)       
  Period End      (177)                   (30)            (96)               (117)           (154)