Company: BOKF
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000875357-25-000013
Chunk: 182

Company: BOK FINANCIAL CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 182
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 in 2024, compared to a loss of $30.6 million in 2023.

40

As discussed in the Market Risk section following, the fair value of our MSRs changes in response to changes in primary mortgage loan rates and other assumptions. We attempt to mitigate the earnings volatility caused by changes in the fair value of MSRs by designating certain financial instruments, generally U.S. government agency residential mortgage-backed securities for which we have elected the fair value option, as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSRs. 

Table 10 – Gain (Loss) on Mortgage Servicing Rights, Net of Economic Hedge 

(In thousands)

 Year Ended December 31, 202420232022Loss on mortgage hedge derivative contracts, net$(23,401)$(10,514)$(72,987)Loss on fair value option securities, net(256)(4,292)(20,358)Loss on economic hedge of mortgage servicing rights(23,657)(14,806)(93,345)Change in fair value of mortgage servicing rights18,437 (3,115)80,261 Loss on changes in fair value of mortgage servicing rights, net of economic hedges included in other operating revenue(5,220)(17,921)(13,084)Net interest income (expense) on fair value option securities1(476)(258)569 Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges$(5,696)$(18,179)$(12,515)

1    Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

Fourth Quarter 2024 Other Operating Revenue

Table 11 – Fourth Quarter 2024 Operating Revenue

(Dollars in thousands)

Three Months EndedDec. 31, 2024Sep. 30, 2024Increase (Decrease)% Increase (Decrease)Brokerage and trading revenue$55,505 $50,391 $5,114 10 %Transaction card revenue27,631 28,495 (864)(3)%Fiduciary and asset management revenue60,595 57,384 3,211 6 %Deposit service charges and fees30,038 30,450 (412)(1)%Mortgage banking revenue18,140 18,372 (232)(1)%Other revenue15,029 17,402