Company: BOKF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000875357-25-000057
Chunk: 42

Company: BOK FINANCIAL CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 2
Chunk 42
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 points, net interest revenue would decrease approximately 4.89%, or $68.0 million.

Table 24 - Interest Rate Sensitivity

(Dollars in thousands)

  Sep. 30, 2025                                                                       June 30, 2025                                                                   
  200 bp Increase      100 bp Increase      100 bp Decrease      200 bp Decrease      200 bp Increase      100 bp Increase      100 bp Decrease      200 bp Decrease  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  $                    $                    $                    $                    $                    $                    $                    $                
  (2.63)               (1.07)               0.84                 1.96                 (2.79)               (1.09)               0.80                 1.89             
  $                    $                    $                    $                    $                    $                    $                    $                
  (1.59)               0.24                 (0.87)               (1.48)               (2.16)               0.19                 (0.91)               (1.57)           

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BOK Financial is also subjected to market risk through changes in the fair value of mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on changes in primary mortgage rates offered to borrowers, intermediate-term interest rates that affect the value of custodial funds, and assumptions about servicing revenues, servicing costs, and discount rates. As primary mortgage rates increase, prepayment speeds slow and the value of our mortgage servicing rights increases. As primary mortgage rates fall, prepayment speeds increase and the value of our mortgage servicing rights decreases.

We maintain a portfolio of financial instruments which may include debt securities issued by the U. S. government or its agencies and interest rate derivative contracts, held as an economic hedge of the changes in the fair value of our mortgage servicing rights. Composition of this portfolio will change based on our assessment of market risk. Changes in the fair value of residential mortgage-backed securities are highly dependent on changes in secondary mortgage rates required by investors, and interest rate derivative contracts are highly dependent on changes in other market interest rates. While primary and secondary mortgage rates generally move in the same direction, the spread between them may widen and narrow due to market conditions and government intervention. Changes in the forward-looking spread between the primary and secondary rates can cause significant earnings volatility.

Management performs