Company: BOKF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000875357-25-000045
Chunk: 27

Company: BOK FINANCIAL CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 27
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  Provision for loan losses (annualized) to average loans                                                                                                 (0.02)                  (0.01)             (0.06)             (0.06)                             0.22                           
  Allowance for loan losses to loans outstanding at period end                                                                                            1.14                    1.18               1.16               1.19                               1.17                           
  Accrual for unfunded loan commitments to loan commitments                                                                                               0.36                    0.36               0.35               0.33                               0.30                           
  Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to loans outstanding at period end      1.36                    1.40               1.38               1.39                               1.34                           

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Allowance for Loan Losses and Accrual for Off-Balance Sheet Credit Risk from Unfunded Loan Commitments

Expected credit losses on assets carried at amortized cost are recognized over their expected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Models incorporate base case, downside, and upside macroeconomic variables such as real GDP growth, civilian unemployment rate, commercial real estate vacancy rates, and WTI oil prices on a probability weighted basis. See Note 4 to the Consolidated Financial Statements for additional discussion of methodology of allowance for loan losses.

Non-pass grade loans, including loans especially mentioned, accruing substandard, and nonaccruing loans, increased $7.2 million over March 31, 2025. Non-pass grade healthcare loans decreased $27 million and non-pass grade general business loans decreased $19 million. Non-pass grade loans to individuals increased $19 million, non-pass grade commercial real estate loans increased $16 million, and non-pass grade energy loans increased $13 million. Nonaccruing loans decreased $4.2 million during the quarter and accruing substandard loans decreased $10 million, while loans especially mentioned increased $22 million. A summary of outstanding loan balances by risk grade is included in Note 4 to the Consolidated Financial Statements.

No provision for credit losses was necessary for the second quarter of 2025, primarily due to further improvements in portfolio credit quality offset by the impact of loan growth during the quarter. The allowance for loan losses totaled $277 million, or 1.14% of outstanding loans, at June 30