Greetings. Welcome to BOK Financial Corporation's fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise and after the speaker's remarks there will be a question-and-answer session. If you'd like to ask a question at that time, please press star then the number one on your telephone keypad. If you'd like to withdraw your question at any time, please press star one again. Thank you. And as a reminder, this conference is being recorded. I would now like to turn the presentation over to Heather King, Director of Investor Relations for BOK Financial Corporation. Please proceed.

Good afternoon, and thank you for joining our discussion of BOK Financial's fourth quarter and full year 2025 financial results. Our CEO, Stacey Kimes, will provide open comments and cover the loan portfolio and related credit metrics. Scott Grauer, Executive Vice President of Wealth Management, will cover our fee-based results, and our CFO, Marty Gruntz, will then discuss financial performance for the quarter, as well as our forward guidance. The slide presentation and press release are available on our website at BOKF.com. We refer you to the disclaimers on slide two regarding any forward-looking statements made during this call. I will now turn the call over to Stacey Kimes, who will begin on slide four.

Thank you, Heather. We appreciate you joining the call this afternoon. We are pleased to report earnings of $177.3 million, or EPS, of $2.89 per diluted share for the fourth quarter. Full year 2025 earnings reached $578 million, or $9.17 per diluted share. This marks a record high earnings per share for both the quarter and the year. Throughout the year, we delivered solid growth and continued to invest in our strong and disciplined approach to risk management. During the year, we achieved solid loan growth, expanding loan balances by more than $1.5 billion. This growth was broad-based, both in terms of geography and lending segment. In the first quarter of the year, loans grew at an annualized rate of 11%. We delivered growth in net interest income and expanded our net interest margin in every quarter of 2025, so in the mid 60% range all year and continued pricing optimization. Our fee income engine, which continues to be a differentiator for us, produced consistent strong results once again this year, contributing $801 million to revenue. This represents a peer leading 38% of credit quality remains excellent. We've maintained a combined allowance of 1.28% and our annualized net charge up rate for the year was only a strong performance across business lines has been recognized by the market as we have outperformed the KBWF Regional Bank Index in total shareholder return over a 1, 3, 5, and 10-year period by 7% attention to our fourth quarter results. You'll hear me emphasize broad-based growth, this is a testament to the work we've done over many years to position ourselves to deliver exceptional value to our shareholders. Outstanding loan balances grew $786 million, or 3.2% sequentially. The growth was broad-based, as our core C&I portfolio and our health care and energy portfolio was $61 million of total. Net interest margin expanded again this quarter, increasing 7 basis points, exhibiting again broad-based growth, 5.1% fiduciary and asset management. Both posted a trajectory this quarter, surpassing $126 billion capital levels. We also had the opportunity to return value to share. of our 4C&I loan forces and general business portfolios inherently relationship to discipline execution. We've seen three consecutive quarters of growth in this business, reflecting the progress from those sustained. Long origination activity and funding of prior healthcare production remains robust, and the cyclical payoffs we experienced in the first and second quarters of this year have moderated to more typical levels. Energy loans posted strong results, growing more than $200 million. This growth was driven primarily by higher utilization rates across activity during the in the early parts of the year, largely driven by industry consulting activity has moderated 1.4% to 1.1% on a year-over-year basis. The quarter decline was driven by a moderate level of normal refinancing into the permanent We saw a strong quarter of originations and increases will be breached. Non-performing assets not guaranteed by the U.S. government decreased non-performing assets that's decreased one basis point. That's increased. We had net charge-offs of 1.4 million during the quarter, averaging three basis points The limited charge-off concerns about specific business lines, normalization, willow provision was required this quarter, as the impact of loan growth was better than $27 million, or 1.28%. Continue to reflect a highly disciplined approach, supported by consistent execution. And now I'll turn the causal on slides 9 and 10.

Total fee income increased $10.9 million to revenue, reflecting an excellent growth in these businesses is an exceptional outcome. Total trading revenue, which includes trading-related net interest income, was $34.1 million, growing $4.3 million. Trading fees were up $5.4 million, driven by increased trading volumes for agency mortgage-backed securities. Investment banking revenue, which includes investment banking and syndication fees, decreased $1.9 million. However, this is following a record high for these businesses. Investment banking revenue of $14.3 million is starting to slide 10. As you know, recurring fee income-based businesses are among the most resilient. The $7.1 million linked quarter increase in asset management and transactions revenue reflects not only the strength of our business model, but also the dedication and expertise of fiduciary and asset. Action card revenue increased $2.1 million, reflecting growth in volume and increased customer relationships. The strength and diversity of our fee-based businesses, which continue to deliver consistent growth and resilience across market cycles. I'll hand the call over to Marty to cover the financials.

Turning to slide 12, net interest income increased $7.6 million and reported net interest margin expanded seven basis points. Excluding trading, core net interest income increased $8.7 million and core margin grew six are largely consistent with those for recent quarters, including fixed return to normal and pre-tax gain. Only two in the appendix to provide more color on notable items. Turning to slide 13, total expenses decreased 8.7 million. Personnel expenses were down 3.0. Based incentive payments were higher driven by increased loan production and new business volumes. However, that was more than offset by seasonal declines in employee benefit costs and by lower deferred compensation costs. As you know, deferred compensation costs vary quarter to quarter, but the amount is consistently offset in the other GAINS line item within the other operation. Non-personnel expense decreased $5.1 million. During the quarter, the FDIC updated their estimate of the special assessment, and other adjustments were made, resulting in a $9.5 million benefit. Beneficial fees and data processing. Slide 14 provides our outlook for full year year 2026. We expect end-of-period loan growth to be in the upper single digits. This reflects a continuation of the growth we've seen in our existing portfolio, which has grown above a 10% annualized rate over the last three months from our new mortgage finance sector. Interest income to be $1.44 to $1.48 billion, $125 million range, into net interest, $125 total revenue number of losses and losses in other operating revenue category. We anticipate the growth rate for expenses to be in the low single digits. We've been very thoughtful about aligning our expense base with the future needs of the business, investing in growth areas, and focusing on efficiency in more mature areas. This should result in a 2026 full-year average efficiency ratio in the 63% to 64% range. This ratio should migrate lower during the course of the year as revenue continues to We expect 2026 provision expense to be in the $25 to $45 million area. This reflects our upper single-digit loan growth expectations and the very strong starting point in credit quality that we can see no tangible evidence of credit normalization beginning in our portfolio. The guidance does allow for at least some amount of that eventual normalization to begin later in the year. With that, I would like to hand the call back to the operator for Q&A, which will be followed by closing remarks from Stacey.

Thank you. we will now begin the question and answer session if you'd like to ask a question please press star then the number one on your telephone keypad to raise your hand and enter the queue if you'd like to withdraw your question at any time simply press star one again your first question comes from the line of Peter Winter with DA Davidson your line is open thank you I was wondering the loan growth has been really strong and you've got a positive outlook for loan growth but could you give a little bit more detail to the drivers to this upper single digit loan growth you you know I noticed that consumer loan growth did moderate in the fourth quarter

and commercial real estate uh was down but you talked about you know the refinancing to permanent commands but strong pipelines just some of the drivers uh including you know mortgage banking at Mortgage Warehouse as well for the loan growth.

Sure, Peter. It's the same thing. I think the good news about the loan growth really is diverse, it's been diverse by geography, it's been diverse by lending type, significant growth obviously in loans in the fourth quarter. About 100 million of that was driven by mortgage finance business, the change from third quarter to fourth quarter. So it contributed in a meaningful way, but it wasn't the main driver. It was diverse across all the areas. I mean, if you think about long growth for the year, early in the year, energy was a headwind. Here in the fourth quarter, it became a little bit of a tailwind. In the fourth quarter, commercial real estate was a bit of a headwind, but for the year, it still was up solidly double digits. I mean, I think that's kind of the beauty of what we've created here is we've got lots of diversity both by blending style and type as well as by geography. And it ebbs and flows each one over a period of time. I mean, it's not necessarily all linear, but it has worked very well together. I mean, I'd love to give you, you know, the main driver, but there's not a main driver. It's very diverse across particularly the CNI world where, as you know, we've made very significant investments over the last three years, both in terms of staff and expansion. And so we're really seeing the benefits of that.

Got it. Thank you. And, you know, positive surprise on the level of share buybacks in the fourth quarter, despite, you know, strong loan growth and where the stock is trading. But how are you thinking about future share buybacks, and do you have a targeted CET1 ratio?

Yeah, Peter, you know, we – this is Marty, and we don't really have a targeted ratio. I mean, as you know, we've got a long history of our share buyback activity being opportunistic, and, you know, the Q4 number, you know, that kind of connects to the sub-debt issuance we made. So as you think about us share buyback going forward, you know, just reflect on our long-run history of doing that in an opportunistic and shareholder value-oriented manner.

All right. Okay. Thanks, Marnie.

Your next question comes on the line of Michael Rose with Raymond James. Your line is open.

Hey, good afternoon, guys. Thanks for taking my questions. Maybe just a follow-up on Peter's question of the buyback. looks like on November 7th, there was 2.2 million shares traded. I was just curious if you guys did an ASR or if there's anything like that. I know you just talked about the sub debt issuance, but if you can talk about that and then maybe also address the change in short interest during that period. It was a pretty big jump from kind of the 4% range to around 12 or 13%. Thanks.

Yeah, Michael, if you look at the Q4 number, you know, we did a portion of that share buyback in Q4 kind of regular way, but as you noted, a portion of that is related to ASR, and that was done right in that early November timeframe, which explains what you see.

Okay, so I assume that was with one of the institutional shareholders that owns your stock. Is that fair?

That's generally not how you do ASRs.

Got it. Okay. Maybe just moving on, you guys had really good deposit growth this quarter, especially in the IB category. Obviously, I understand the guys, but can you talk about the competition for deposits and how we should think about, you know, not only growth, but the mix and deposit betas as we move through the hopefully two cuts this year.

Yeah, so a couple things about deposits. So just on a couple questions there. So competition, you know, I'd say that the environment is, you know, it's always competitive. It is today. It has been for a long time. But there's nothing in particular that's irrational in our markets that we'd point to. You know, it's just sort of competitive at that high normal level. Growth this quarter, you know, we felt very good about deposit growth all year long. I would just point out that a portion of the growth you saw in fourth quarter was just the wholesale deposit that, you know, for odd reasons relating to the rate cuts, it just turned out there were some wholesale deposits available that were cheaper than the wholesale, you know, normal secure wholesale borrowing that we would use. And so we just replaced that. So at some point that washes out, and don't be surprised if you see that happen in the first or second quarter when those spreads kind of go back to normal but as you look forward into 2026 and we expect to grow loans well we were expect to grow deposits well the loan growth will precede the deposit growth that will be normal for us and given you know the the deposit ratio we have to start with you know we're very comfortable with that drifting up a little bit over the year And then lastly, on deposit betas, you know, we've had very good performance on deposit betas in the mid-60s here for deposit beta and upper 70s on interest-bearing liability beta. And those numbers are, you know, cumulative down beta cycle. And we expect that as we get into the rate cuts later in 2026 that we have performance right on top of that. that we feel very comfortable with being able to continue with those levels for those cuts.

Thanks for taking my questions.

Your next question comes from the line of David Chiaverini with Jeffries. Your line is open.

Thanks for taking the question. So I wanted to ask about fee income, clearly very strong fees here, and the growth mid-single single digit excluding trading, can you give some comments on what your expectations are on the trading front and drivers for overall fees?

Yeah, so let me start here. And so I'd say that our intention here is to talk about both trading, you know, the trading portfolio of businesses, we expect mid-single digit and that's, you know, really very long run rate, you know, at times we're above that, but that's kind of how we see those businesses. And any given business can be a little higher or lower in a given year. But that's how we see that portfolio. And when I say that, I'm including total trading revenue, which includes the NII and fees part, we have the same expectation there that that will grow, you know, mid-single digit and, you know, certainly market opportunities where that could be notably higher. Let's see, anything you'd add?

Yeah, this is Scott. So I would say that, you know, in addition to I think Marty fringed it well with the top of the house, I think that what we're seeing is a continuation of really the momentum that we built throughout 25. We had a good first month of 25, and then the last two months of the first quarter were challenging for all the fixed income markets. And we stabilized after that and I really think returned to more of our expected trend lines in terms of our trading volumes activity. And we've continued to see the demand really coming from our financial institution, client base, as well as asset managers have kind of returned to more normalized demand, particularly in the mortgage-backed securities. And then we've seen continued strength in the municipal sector as well. So I don't think that there's anything extraordinary that occurred, but really more of a return to normalized levels of demand. And then the total revenue, as Marty articulated, both the fees and the NII out of that activity, we feel pretty good about and feel constructive in terms of the trends that we're seeing build back to our more normalized rates there. Yeah, that was a good fourth quarter.

Great. Thanks for that. And then shifting over to the expense side of things, can you talk about the outlook looks really good on the efficiency side? with the guy to 63% to 64% versus the 65%. Can you talk about the drivers there? I know mortgage finance, you know, you're going to see some revenue catch-up versus the expenses that came through in 2025. But can you talk about that and other drivers of this strong efficiency outlook?

Yeah, so you're right. Part of that is just continuing good momentum on the revenue side. And then part of that relates to some work that we completed in Q3 and Q4 of 2025 to make sure we've got our workforce and other expenses invested in the areas that we want to have them invested in. And so as you go from Q4 to Q1, you'll actually see some reduction in expense levels in the personnel line item as a result, and the fee, professional fees line item, Q4 to Q1, we would expect to see some benefit there as well.

And I might just, this is Stacy, I might just add on there a couple of points. I think number one, you know, what we think about things for the long term, we're not focused on next quarter. And we've made several long-term investments, you know, the last several years about how we think about growing the business. Certainly, the expansion in San Antonio was a big investment for us. The investment in mortgage finance was a big investment for us. And obviously, you lead with expenses there, and it takes time for the revenue to catch up and those investments to earn a return. They're now beginning to do that, and so that's going to show up in the results. We have taken actions to try to manage that and demonstrate to the market that, look, we can manage these expenses, but we're going to invest, and as those investments mature, you'll be able to see that efficiency ratio come back to a level you're more accustomed to for us. For us, given the mix of free revenue, we're never going to be a 55% efficiency ratio type company because of our high mix of fee businesses. But we do think that the guidance we provided is very reasonable for us, and I think you should expect us to achieve that, unless given the disruption in the markets that we see, there may be some opportunities for us to continue to be aggressive in talent acquisition. And should that opportunity come to fruition, we may obviously choose to do that, which may delay the kind of efficiency ratio falling, but based on what we see today, we're very confident in our ability to let that efficiency ratio fall. But there could be some things that very opportunistically come about that would allow us to build a better, even better revenue future, and so we're not going to walk away from that to manage the efficiency ratio.

That's very helpful.

Your next question comes from the line of John Alstrom with RBC. Your line is open.

Hey, thanks. Good afternoon. Hey, John. A couple of follow-ups here. Stacey, you talked about $100 million in balances from mortgage finance in the fourth quarter. What kind of a contribution do you expect from that business in 2026 in terms of the balance sheet?

You know, we think the number could be – we could easily get to, you know, a billion in commitments by the end of 26. Assume half of that's funded. you know probably do better than that honestly but but i think that's that's easy to assume a lot of these things they they they just take longer than you think that they will by three to six months and so i'm trying to be a little bit cautious there to uh you know don't over promise but the trajectory there is very positive in terms of framing it and then marty for you i i asked

you a similar question to this last quarter but it seems like a decent setup for the margin for you expect the core margin to float higher and can you share with us some of the repricing of this you know fixed rate loans and securities and how that might how that might flow through 26 you bet yeah yeah you're right we do continue to expect both margin and core margin will continue to expand into 2026 you know fixed rate repricing is certainly a big driver there and so it's about 700 million a quarter of securities portfolio that reprices up old rate to new rate and you know as we go forward that that step up is you know not what it was a year ago but but think you know that's that's maybe in the 60 70 75 basis point territory that rate step up and then fixed rate loan book kind of similar story there call it 200 million a quarter on average and that's probably more you 100 basis points of rates step up as those occur. And so that gives you a nice tailwind going into the year. You know, with the six basis points in core margin we saw this quarter, you know, there might be a little bit of reversion to the mean, because that average has been more like four and a half basis points. But, you know, we feel like that's still that there's legs to that driver there through 2020.

This is Casey. Just to kind of confirm, too, I mean, you know, the actual rate movements don't make a big difference to us. Maybe you're rounding around the fringes And in our forecast or the guidance that we provided as soon as our, you know, a couple of rate cuts that are in the, you know, back half of the year that don't really make much of a difference, what does make a difference to us is the steepening yield curve. That's all financial institutions. We're not unique there. And so you are beginning to see, you know, really some steepness to the curve or actually some shape to the curve, maybe not steepness, but shape. And that's certainly helpful to us and other financial institutions as we think about, you know, 2026 and future periods as well.

Yeah, because that builds over time.

Yeah, it seems like a good environment. So, okay, thank you for the help. I appreciate it.

Your next question comes from the line of Jared Shaw with Barclays. Your line is open.

Hey, maybe just going back to the growth rate on fees and on the loan book, It feels like, you know, looking at what we've seen for the last three quarters, that the guide for 2016 is very conservative. Is there some area where, you know, maybe you're expecting a little more pressure than we're expecting? I mean, you know, talking about, you know, 50% funded on a billion of commitments with mortgage warehouse, you know, that's a third of the growth that you saw on the whole balance sheet this year. Where should we think that maybe there's some pressure on growth?

Well, I think, you know, upper single digits is a, you know, can be 7% to 9%, so I'm pretty confident in our ability to deliver that. I think that, you know, we want to convey to the street what we believe we can deliver, and certainly we'll do our very best to outperform that. But we think in this environment, particularly upper single-digit loan growth, is a very positive outlier, and we'll continue to – I think we're very well positioned. We've done a lot of work across lots of lines of businesses to be in a position to grow loans. You've seen that. I think we've grown at an 11% clip over annualized over the last nine months. And that's with some headwinds and some tailwinds from various areas. But I think that's going to continue. And that's what we don't know is, you know, will there be an unexpected headwind in, you know, an area that we can't put our finger on today? And so we think we can deliver, comfortably deliver the guidance that we've provided. and hopefully we can do better.

Appreciate that. And then maybe shifting to, you know, the credit outlook. You know, obviously credit's been great, and you sound like things are, you know, the outlook remains strong. Just as you look at your model, what would drive any incremental concern on credit or which would have more of an impact on potential credit concerns? Would it be, you know, oil prices, tariffs, inflation? And, you know, I guess where are you keeping an eye out more closely?

Yeah, you're right. I mean, I get teased a lot here internally about saying that credit is unsustainably good, and it seems like it's been that way for several years now. And certainly in the short term, we think it's going to stay that way. The biggest driver for provision levels going forward will be loan growth and expected economic outlook. I mean, those will be the two things that will drive higher or lower provision levels. And as long as the economic outlook remains strong, you know, we're well positioned from an allowance perspective. And, you know, there will be a day that criticized and classified and non-performing levels come up to a more normal level. You can see in the investor presentation kind of where we were essentially pre-COVID. And we think that when it goes back to that level, it won't be, you know, that credit's going bad. It's just going back to normal. But we don't have some of the early indications that others may have, like we don't have low-end consumer and things like that, that you're beginning to see some weakness around. That's not kind of core to our portfolio. And so our portfolio is held in there very well. I think in the short term it's going to continue to do that. And there's not, you know, just this easily identifiable thing that we think is the next thing to focus on there. But we have a great credit team, a very seasoned, experienced team, and a great group of folks on the line who take risk management very responsibility. So we feel good about where we're at there.

If we see sort of an unchanged economic backdrop from where we are today and the loan growth that you're expecting, should we expect provisions, you know, in each quarter in 26, but, you know, maybe potentially still some down pressure on the allowance as a ratio or, you know, you're going to have to provide for all loan growth from this point, and we should think about that ratio as stable from here?

Yeah, I would go back to the guidance we provided. I'm not going to get into quarterly what would happen or what could happen. We've given you an outlook, a positive economic outlook, a range of loan growth, and a range for provision levels next year, and that's our best estimate today. You've seen how we've handled it over time, and so you can certainly provide your own color to that, but I'm not going to get more specific than that. Okay, thanks.

Your next question comes from the line of Woody Lay with KBW. Your line is open.

Hey, good afternoon, guys. Good afternoon. I wanted to start on the mortgage finance business. And longer term, as that business continues to grow, how do you plan to fund that business? Will it be core deposit funded based on, you know, a low loan-to-deposit ratio, or as the volatility picks up, will you use broker deposits to help fund some of that?

Yeah, that loan portfolio, like any other loan portfolio, will be funded just by the broader, you know, funding mix, and you should expect that to largely look like it does today where there's a poor deposit. This business will bring with it a decent amount of deposits. But we've got a very strong funding profile, and this particular asset class is very liquid, so it gives us a lot of different alternatives to use, and we'll just use the lowest cost, most sensible mix.

Got it. That's helpful. And then last for me, wanted to ask a follow-up on the trading business. You mentioned the outlook. There is mid-single-digit growth, but there are market conditions that would support much stronger growth. Could you just remind me of the market dynamics out there that would support faster growth in your trading business?

Yeah, so this is Scott. So obviously, as mortgage origination activity and volumes in the mortgage sector tend to to add momentum and volumes in a declining rate environment. So this is one of those businesses that we enjoy real, you know, higher growth rates in challenging economic times that are spawning lower interest rates. So in a declining rate environment where mortgage origination were to increase, that activity given our, you know, we're fairly equal in terms of volumes and municipals and mortgage-backed That mortgage-backed security in particular would benefit from lower rates as would refinancing activity in the municipal space. So as rates decline, those two segments of our trading book are beneficiaries.

The other thing I might add too there is a lot of our clients are other financial institutions And, you know, they've been reluctant to, if you will, take losses in their securities portfolio. So as those portfolios get closer to par and there's fewer unrealized losses there, that's going to create a little bit more opportunity as well, we think.

Thanks for taking my questions.

Your next question comes from the line of Ben Gerlinger with Citi. Your line is open.

Hey, good afternoon.

Hey, Ben.

I was curious if we could talk through a little bit on the expense, Marty. It's a little bit myopic here, so I apologize. But you said 3Q and 4Q had some expenses that were called non-core reinvestment. That kind of elevated the starting off point for 26. Is it fair to think, like, to level set all these core items just a little bit more of a mid-single digit going forward? I'm just trying to think about just underwriting the future, given you guys have a faster pace of growth than the national average at this point.

Yeah, just in Q3 and Q4, it was small, but there's a little bit of period costs related to some of the realignment we did, but that's not a material number I'm thinking about next But that is a little bit of a tailwind for us from Q4 to Q1. Gotcha.

Okay. That's helpful. And then in terms of just the mortgage kind of silo, I get that it's relatively new. So maybe you don't have the perfect last site at this point. But there's like a ballooning effect as the mortgage business improves generally on a seasonality basis. Do you expect something similar where, or is it such you're starting at such a low base, it's just kind of growth throughout and you have new customers adding and funding up their relative commitments? Like, should we expect it to kind of peak in the roughly July timeframe and then kind of wane thereafter, or would you expect a little bit more linear growth throughout the Given we're starting from essentially zero, I don't think you're going to be able to see the effect of that, and I think you're right.

We see that somewhat intra-month, as that business has natural ebbs and flows inside But given our starting point here, I don't think it's going to be discernible. it's going to look like just pretty strong expected largely linear growth throughout 26.

I can sneak one more in. I know the San Antonio expansion was a pretty big lift for everyone involved and it seems to be pretty successful at this point given the seasoning effects with the disruption throughout kind of Texas I should say or even just this Texas area at every continuous a state, would you expect to do incremental hires to give in opportunity in front of you or is it kind of a playbook that you already wrote it and we're going to write it here?

No, I think you're exactly right. I think that if you look back in our history, some of the highest careers of growth for us has been when there's been the most market dislocation. And M&A is highly disruptive. It's disruptive to talent. and it's disruptive to clients who are forced to go through a conversion that wasn't their choosing. And so our intention is to be aggressive and take advantage of that dislocation as much as we can. But I suspect we're not the only ones with that strategy, and so that will be in and of itself a very competitive process. But we certainly expect in the markets where there have been significant M&A activity to be acquisition and a customer prospect acquisition.

Your next question comes from the line of Brett Rabatton with Hoofty Group. Your line is open.

Hey, good afternoon. Hey, guys. I wanted to go back to the NII guide for the full year and just given the comments on the margin. It seems like the guidance that you're giving would imply a similar, like, low single-digit growth of average earning assets in 26 relative to the high single-digit growth of loans. You know, is that fair? And then you talk some about the various borrowing pieces that you can use on the funding side. You know, do you end up reducing that throughout the year as a result?

Yes, so you're right. The blend of fairly stable securities portfolio portfolio and, you know, good growth in the loan book will blend out to a lower earning asset growth, but combined with a little lower margin expansion, that's how you get to the number, and we expect deposits to grow to support overall margin, but we also expect to see, you know, the loan growth be a little faster than the deposit growth.

And you guys have talked quite a bit on this call about the fee income guidance, you know, Obviously, brokers and trading is hard to predict at best, depending on rates to a large degree. I'm a little bit surprised. The mid-single guide seems reasonable for some of the businesses, but I'm just curious if you just feel like maybe the growth and what you've accomplished, which is huge on the asset management side, if maybe that's tough to continue to replicate date, or if there's anything else that's driving maybe a loss of date growth level than what you've experienced the past two quarters in particular?

Well, two things. Keep in mind, well, number one, you're right, that business we feel great about, and that should have a very long-term growth rate, but note that within that fee guide that there is a shift from fee income into net interest income just within trading just based on the curve slipness so don't let that confuse our enthusiasm for the fee-based businesses the other piece that you may be missing is you remember in marty's prepared remarks you talked about the 23 and a half million kind of one-time game that's included in the 2025 uh fee number essentially so uh if you think about that uh x that number i think that probably gets you to a little bit

a bit higher number than what you see on the surface, but Marty alluded to that in his prepared remarks.

And Marty, would you be willing to throw out a number for the movement from the income to NI guide on the brokerage trading?

That's maybe a little bit more into the weeds than is constructive, but it's not small. When you look at the other large banks that have trading, they're doing the same exact That sort of guide for the same example.

Great. I don't know if I'm last. The other question I really wanted to ask was just around, you guys have been growing Texas in particular and Oklahoma really well, Arizona had a good 25, but it seems like Colorado and Kansas, Missouri have been lagging. Any thoughts on those two states or three states and those markets and, you know, if there are competitive dynamics that are slowing stronger growth or anything else you might comment on that?

No, obviously we're excited about the growth areas that you mentioned. I mean, Oklahoma, Texas, and Arizona you highlighted, and those were all great stories for 2026. We're still very excited about Colorado and Kansas City. That's the great thing about our business lines and about our geography is that they're not all linear at the same point, but the diversity is what creates the growth over time. And so we're as excited about those markets as we are any of the other ones that we're in. and there's nothing necessarily unique about those. It creates a different growth dynamic there.

Fair enough. Appreciate the caller.

And your final question comes from Matt Olney with Stevens. Your line is open.

Yeah, hey, guys. Just a few follow-ups here. Going back to Stacy's comments about the importance of the steepness of the curve, can we assume that the guidance implies about a 50 basis point improvement throughout the year? So shorting comes down 50 BIPs, and the intermediate part of the curve maintains kind of where it's at today.

Yeah, that's more or less what forwards have, and that's basically how we think about the year.

Thank you for that, Marty. And then on the capital discussion, it sounds like there aren't any specific target ratios out there you want to disclose. I think we're all just trying to understand if there could be additional deployment activity or opportunities for 2026, whether it's buyback, M&A, or something else. So can you just address if you see any interest in capital deployment opportunities for the year?

This is Stacy. I think, you know, look, our kind of order generally has been our first choice is loan growth. Lone growth has been very good. Second choice is, you know, looking at M&A opportunities as they come along. We're opportunistic there. We're not interested in doing something just for the sport of doing it. It needs to add intrinsic strategic value as well as being financially beneficial to shareholders. You know, we don't see anything today on the near-term horizon that would indicate that that's a near-term deployment of capital. And obviously, you saw us be more aggressive in the fourth quarter with share repurchases, but likely to slow that down here as we get into 2026. I think that's the use of the capital for us. And so we're kind of not locked into any one favorite, and we can pivot and be more aggressive as we have a view over time. And we're still active. We're looking for ways to deploy capital from an MIA perspective. But as you know, we kind of don't act like capital is burning a hole in our pocket. We're not afraid to sit on it and wait to find an opportunistic time to redeploy it. And that's proven to be a good strategy for us over time.

Yeah. Okay. That's helpful, Stacey. And then just lastly, the loan yields in the fourth quarter, I thought were better than I was expecting. Anything unusual in those loan yields in the fourth quarter? And then any commentary about just loan beta expectations within that guidance in 2026?

Yeah, really nothing that's a change fundamentally in that portfolio. As you know, I know it's very much a floating rate portfolio and very much a one-month floater portfolio, and so there's nothing that would have changed the characteristics to make it behave any And that's all captured in how we constructed the margin guidance.

The one thing I would say there, Matt, as you know, and we talked about earlier on the call, most of those loans are SOFR-based. So there's been a little bit of quirkiness with SOFR that remains. And so, you know, they've benefited just a little. That's really it.

Yeah, that kind of flows through to a basis point or maybe two. Okay.

Okay, that's helpful, guys. Thanks again.

Thank you. And with no further questions in queue, I'd like to turn the conference back over to Stacey Kimes for any closing remarks.

To highlight today, broad-based growth has been a defining thing for the quarter and for the year. It reflects the disciplined work we've undertaken over many years to strengthen our foundation, diversify our earning stream, and consistently deliver results across the business. BOK Financial is a strong, stable, growing company. Our progress has positioned us well to navigate the current environment, capitalize on market disruption, and continue generating long-term value for our shareholders. We appreciate your interest in BOK Financial and your willingness to spend time with us this afternoon. Please reach out to Heather King if you have any additional questions at h.king at bokf.com.

This concludes today's conference call. You may now disconnect.