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BOK Financial Rises Nearly 16% in 6 Months: Is There More Room to Run?
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Key Takeaways
BOKF shares gained 15.9% in six months, beating the industry's 6.8% rise and key peers.
BOKF posted loan CAGR 4.3% and deposit CAGR 11.8% (2018-2025); both rose Y/Y in Q1'26.
BOKF expanded its Mozrt and Mastercard partnerships, while Q1'26 reflected stable credit quality trends.
BOK Financial Corporation’s (BOKF - Free Report) shares have rallied 15.9% in the past six months, outperforming the industry’s 6.8% growth. Moreover, BOKF’s price performance has been better than that of its peers, Cullen/Frost Bankers, Inc. (CFR - Free Report) and Texas Capital Bancshares, Inc. (TCBI - Free Report) . Shares of Cullen/Frost Bankers and Texas Capital have risen 11.8% and 10%, respectively.
Price Performance
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward.
Earnings Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BOKF’s 2026 and 2027 earnings indicates a 5% and 3.9% rise, respectively. This suggests that analysts are more optimistic about the company’s future earnings.
With BOK Financial outperforming the industry and having a strong earnings outlook, investors may wonder if the stock is worth adding to their portfolio. To answer that, let’s delve deeper and examine the factors driving its investment appeal.
Factors Supporting BOKF Stock
Loan and Deposit Growth to Support Expansion: BOKF has been benefiting from steady loan growth, driven by its diversified business model and increasing loans to individuals. It has been strategically expanding its loan portfolio across sectors such as energy, healthcare and service lending, reducing concentration risks while supporting balanced growth. The company’s total loans recorded a compound annual growth rate (CAGR) of 4.3% between 2018 and 2025, underscoring its steady lending growth and diversified portfolio expansion.
Over the same period, deposits expanded at a CAGR of 11.8%, reflecting a stable funding base and continued growth in customer relationships. Further, both metrics increased year over year in the first quarter of 2026, indicating sustained business momentum despite a challenging operating environment. Looking ahead, the company’s strong loan pipeline, coupled with rising deposit balances, is expected to support organic growth initiatives. Continued diversification across lending categories and focus on relationship-based banking are likely to further strengthen BOK Financial’s balance sheet and revenue-generating capabilities over the long term.
Lower Funding Costs to Support NII Growth: The Federal Reserve raised interest rates in 2022 and 2023 to curb inflationary pressures. Higher rates supported BOKF’s net interest income (NII) growth by increasing yields on loans and other earning assets, resulting in a five-year CAGR of 2.4% through 2025. The upward momentum in NII continued in the first quarter of 2026, supported by stable earning asset growth and improving balance sheet dynamics.
NII Growth Trend
Image Source: BOK Financial Corporation
However, net interest margin (NIM) declined to 2.75% in 2024 from 2.93% in 2023 and 2.98% in 2022, mainly due to deposit repricing that elevated funding costs. Despite this pressure, NIM rebounded to 2.98% in 2025, driven by easing funding costs and improved asset yields, with the momentum continuing in the first quarter of 2026.
Looking ahead, BOK Financial’s NII and NIM are expected to benefit from lower funding costs, sustained asset yields, improving loan demand and a favorable funding mix.
Digital Payment Partnerships to Enhance Efficiency: BOK Financial is strengthening its digital banking and payment capabilities through strategic fintech partnerships focused on modernizing cross-border transactions, improving operational efficiency and expanding correspondent banking services. In November 2023, the company collaborated with Mozrt Inc. to introduce real-time foreign exchange rates, embedded compliance workflows, secure digital payment origination and API-driven integration capabilities, while also enabling white-labeled banking solutions for correspondent banks. Building on this relationship, BOKF expanded the partnership in February 2025 by adding automated compliance tools, instant currency transfers and real-time international payment processing capabilities.
Additionally, in January 2024, the company expanded its long-term payments partnership with Mastercard to strengthen its debit, commercial card and TransFund processing operations through enhanced payment innovation, cybersecurity and digital banking capabilities. Through such collaborations, it continues to focus on fintech partnerships and payment modernization initiatives to improve operational efficiency, enhance customer experience and support long-term growth.
Improving Credit Quality to Support Stability: The company’s asset quality trends have remained encouraging, with credit quality metrics improving beyond pre-pandemic levels. It has witnessed a sharp decline in non-performing assets, which recorded a seven-year (ended 2025) negative CAGR of 16.6%. Likewise, net charge-offs (NCOs) declined at a negative CAGR of 26.4% over the same period, reflecting disciplined underwriting standards and effective risk management practices.
Further, BOKF recorded no provision for credit losses in the first quarter of 2026, while NCOs declined year over year, highlighting continued credit stability. Although management’s 2026 provision outlook of $15-$35 million suggests some normalization later in the year, the current asset quality trends are expected to remain supportive of the company’s financial performance and balance sheet strength.
Steady Capital Distribution Activities: BOK Financial maintains a disciplined capital distribution strategy, supported by consistent earnings strength and solid capital levels. It increased its dividend annually, including a 10.6% hike in October 2025 to 63 cents per share, reflecting management’s confidence in its financial position and long-term earnings outlook. The company has increased its dividend five times over the past five years, with a payout ratio of 27% and a current dividend yield of 1.99%.
Dividend Yield
Image Source: Zacks Investment Research
In addition to dividends, the company continues to focus on shareholder returns through share repurchases. On July 29, 2025, the board approved a new repurchase authorization of up to 5 million shares, replacing the November 2022 program. While no shares were repurchased in the first quarter of 2026, management continues to evaluate buybacks opportunistically within its capital framework. As of March 31, 2026, 2.9 million shares remained available under the authorization. Further, the launch of Visa’s Class B exchange program provides additional flexibility for potential capital deployment initiatives later in 2026.
Near-Term Headwinds for BOK Financial
Rising Expense Base: Escalating operating expenses remain a key concern for BOKF and could continue to pressure bottom-line growth. Its operating expenses witnessed a CAGR of 3.5% during the 2018-2025 period, with the upward trend continuing in the first quarter of 2026. Higher employee compensation costs and continued investments in technological advancements are expected to keep the expense base elevated. Management projects expenses to grow at a low-single-digit rate in 2026.
Weak Liquidity Position: BOKF’s relatively low liquidity profile remains another concern. As of March 31, 2026, the company had total debt of $6.5 billion, while cash and due from banks, along with interest-bearing cash and cash equivalents, totaled only $1.4 billion. The comparatively low cash balance against debt obligations could limit financial flexibility during periods of economic stress or unfavorable market conditions. Additionally, its significant exposure to commercial loans could heighten credit risks if macroeconomic conditions weaken.
How to Approach BOKF Stock Now?
In terms of valuation, BOKF stock appears expensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 12.14X, which is higher than the industry’s 12.03X.
Meanwhile, Cullen/Frost Bankers holds a P/E ratio of 13.09X, while Texas Capital’s P/E ratio stands at 12.26X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
While rising operating expenses, liquidity concerns and a slightly premium valuation remain near-term headwinds, these risks appear manageable given the company’s resilient earnings profile and improving credit quality trends. Further, continued investments in digital payment modernization and fintech partnerships are likely to support long-term operational efficiency and customer engagement.
The company’s steady loan and deposit growth, improving NII and NIM trends, disciplined capital distribution strategy and favorable earnings estimate revisions reflect strengthening business fundamentals.
Overall, BOK Financial appears well-positioned to benefit from improving balance sheet dynamics, strategic digital initiatives and stable credit performance, making the stock an attractive choice for investors seeking exposure to a fundamentally strong regional banking franchise.
View the Zacks #1 Rank List
Image: Bigstock
BOK Financial Rises Nearly 16% in 6 Months: Is There More Room to Run?
Key Takeaways
BOK Financial Corporation’s (BOKF - Free Report) shares have rallied 15.9% in the past six months, outperforming the industry’s 6.8% growth. Moreover, BOKF’s price performance has been better than that of its peers, Cullen/Frost Bankers, Inc. (CFR - Free Report) and Texas Capital Bancshares, Inc. (TCBI - Free Report) . Shares of Cullen/Frost Bankers and Texas Capital have risen 11.8% and 10%, respectively.
Price Performance
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward.
Earnings Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BOKF’s 2026 and 2027 earnings indicates a 5% and 3.9% rise, respectively. This suggests that analysts are more optimistic about the company’s future earnings.
With BOK Financial outperforming the industry and having a strong earnings outlook, investors may wonder if the stock is worth adding to their portfolio. To answer that, let’s delve deeper and examine the factors driving its investment appeal.
Factors Supporting BOKF Stock
Loan and Deposit Growth to Support Expansion: BOKF has been benefiting from steady loan growth, driven by its diversified business model and increasing loans to individuals. It has been strategically expanding its loan portfolio across sectors such as energy, healthcare and service lending, reducing concentration risks while supporting balanced growth. The company’s total loans recorded a compound annual growth rate (CAGR) of 4.3% between 2018 and 2025, underscoring its steady lending growth and diversified portfolio expansion.
Over the same period, deposits expanded at a CAGR of 11.8%, reflecting a stable funding base and continued growth in customer relationships. Further, both metrics increased year over year in the first quarter of 2026, indicating sustained business momentum despite a challenging operating environment. Looking ahead, the company’s strong loan pipeline, coupled with rising deposit balances, is expected to support organic growth initiatives. Continued diversification across lending categories and focus on relationship-based banking are likely to further strengthen BOK Financial’s balance sheet and revenue-generating capabilities over the long term.
Lower Funding Costs to Support NII Growth: The Federal Reserve raised interest rates in 2022 and 2023 to curb inflationary pressures. Higher rates supported BOKF’s net interest income (NII) growth by increasing yields on loans and other earning assets, resulting in a five-year CAGR of 2.4% through 2025. The upward momentum in NII continued in the first quarter of 2026, supported by stable earning asset growth and improving balance sheet dynamics.
NII Growth Trend
Image Source: BOK Financial Corporation
However, net interest margin (NIM) declined to 2.75% in 2024 from 2.93% in 2023 and 2.98% in 2022, mainly due to deposit repricing that elevated funding costs. Despite this pressure, NIM rebounded to 2.98% in 2025, driven by easing funding costs and improved asset yields, with the momentum continuing in the first quarter of 2026.
Looking ahead, BOK Financial’s NII and NIM are expected to benefit from lower funding costs, sustained asset yields, improving loan demand and a favorable funding mix.
Digital Payment Partnerships to Enhance Efficiency: BOK Financial is strengthening its digital banking and payment capabilities through strategic fintech partnerships focused on modernizing cross-border transactions, improving operational efficiency and expanding correspondent banking services. In November 2023, the company collaborated with Mozrt Inc. to introduce real-time foreign exchange rates, embedded compliance workflows, secure digital payment origination and API-driven integration capabilities, while also enabling white-labeled banking solutions for correspondent banks. Building on this relationship, BOKF expanded the partnership in February 2025 by adding automated compliance tools, instant currency transfers and real-time international payment processing capabilities.
Additionally, in January 2024, the company expanded its long-term payments partnership with Mastercard to strengthen its debit, commercial card and TransFund processing operations through enhanced payment innovation, cybersecurity and digital banking capabilities. Through such collaborations, it continues to focus on fintech partnerships and payment modernization initiatives to improve operational efficiency, enhance customer experience and support long-term growth.
Improving Credit Quality to Support Stability: The company’s asset quality trends have remained encouraging, with credit quality metrics improving beyond pre-pandemic levels. It has witnessed a sharp decline in non-performing assets, which recorded a seven-year (ended 2025) negative CAGR of 16.6%. Likewise, net charge-offs (NCOs) declined at a negative CAGR of 26.4% over the same period, reflecting disciplined underwriting standards and effective risk management practices.
Further, BOKF recorded no provision for credit losses in the first quarter of 2026, while NCOs declined year over year, highlighting continued credit stability. Although management’s 2026 provision outlook of $15-$35 million suggests some normalization later in the year, the current asset quality trends are expected to remain supportive of the company’s financial performance and balance sheet strength.
Steady Capital Distribution Activities: BOK Financial maintains a disciplined capital distribution strategy, supported by consistent earnings strength and solid capital levels. It increased its dividend annually, including a 10.6% hike in October 2025 to 63 cents per share, reflecting management’s confidence in its financial position and long-term earnings outlook. The company has increased its dividend five times over the past five years, with a payout ratio of 27% and a current dividend yield of 1.99%.
Dividend Yield
Image Source: Zacks Investment Research
In addition to dividends, the company continues to focus on shareholder returns through share repurchases. On July 29, 2025, the board approved a new repurchase authorization of up to 5 million shares, replacing the November 2022 program. While no shares were repurchased in the first quarter of 2026, management continues to evaluate buybacks opportunistically within its capital framework. As of March 31, 2026, 2.9 million shares remained available under the authorization. Further, the launch of Visa’s Class B exchange program provides additional flexibility for potential capital deployment initiatives later in 2026.
Near-Term Headwinds for BOK Financial
Rising Expense Base: Escalating operating expenses remain a key concern for BOKF and could continue to pressure bottom-line growth. Its operating expenses witnessed a CAGR of 3.5% during the 2018-2025 period, with the upward trend continuing in the first quarter of 2026. Higher employee compensation costs and continued investments in technological advancements are expected to keep the expense base elevated. Management projects expenses to grow at a low-single-digit rate in 2026.
Weak Liquidity Position: BOKF’s relatively low liquidity profile remains another concern. As of March 31, 2026, the company had total debt of $6.5 billion, while cash and due from banks, along with interest-bearing cash and cash equivalents, totaled only $1.4 billion. The comparatively low cash balance against debt obligations could limit financial flexibility during periods of economic stress or unfavorable market conditions. Additionally, its significant exposure to commercial loans could heighten credit risks if macroeconomic conditions weaken.
How to Approach BOKF Stock Now?
In terms of valuation, BOKF stock appears expensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 12.14X, which is higher than the industry’s 12.03X.
Meanwhile, Cullen/Frost Bankers holds a P/E ratio of 13.09X, while Texas Capital’s P/E ratio stands at 12.26X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
While rising operating expenses, liquidity concerns and a slightly premium valuation remain near-term headwinds, these risks appear manageable given the company’s resilient earnings profile and improving credit quality trends. Further, continued investments in digital payment modernization and fintech partnerships are likely to support long-term operational efficiency and customer engagement.
The company’s steady loan and deposit growth, improving NII and NIM trends, disciplined capital distribution strategy and favorable earnings estimate revisions reflect strengthening business fundamentals.
Overall, BOK Financial appears well-positioned to benefit from improving balance sheet dynamics, strategic digital initiatives and stable credit performance, making the stock an attractive choice for investors seeking exposure to a fundamentally strong regional banking franchise.
BOKF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.