Company: BOKF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000875357-25-000057
Chunk: 43

Company: BOK FINANCIAL CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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 a stress test to measure market risk due to changes in interest rates inherent in its MSR portfolio and hedges. 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 $20 million market risk limit for mortgage servicing rights, net of economic hedges.

Table25 - MSR Asset and Hedge Sensitivity Analysis

(In thousands)

                    Sep. 30, 2025                                                  June 30, 2025                              
                    Up 50 bp                         Down 50 bp                    Up 50 bp                                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  MSR Asset         $                    14,190      $               (16,840)      $                    13,160      (16,233)  
  MSR Hedge                            (16,223)                        16,213                         (13,620)        13,503  
  Net Exposure      $                   (2,033)      $                  (627)      $                     (460)       (2,730)  

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.

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Table26 - Mortgage Pipeline Sensitivity Analysis

(In thousands)

                  Three Months Ended                                                         Nine Months Ended                                     
                  Sep. 30, 2025                           June 30, 2025                                             Sep. 30, 2024                  
                  Up 50