BOK FINANCIAL CORP

Previous wording

BOK Financial reported net income of $155.8 million, or $2.58 per diluted share, for the first quarter of 2026 compared to $177.3 million, or $2.89 per diluted share, for the fourth quarter of 2025. Excluding the gain recognized on the sale of a merchant banking investment and the FDIC special assessment benefit 1, net income would have been $152.1 million, or $2.48 per diluted share, in the fourth quarter of 2025. PPNR 1, a non-GAAP measure, was $199.7 million for the first quarter of 2026, compared to $228.5 million in the fourth quarter of 2025.

Current wording

BOK Financial reported net income of $176.5 million, or $2.92 per diluted share, for the second quarter of 2026 compared to $155.8 million, or $2.58 per diluted share, for the first quarter of 2026. Excluding the net gain related to the exchange of our Visa shares and the loss from repositioning of the available-for-sale securities portfolio 1, net income would have been $156.5 million, or $2.59 per diluted share, in the second quarter of 2026. PPNR 1, a non-GAAP measure, was $227.7 million for the second quarter of 2026, compared to $199.7 million in the first quarter of 2026.

Previous wording

•Net interest income totaled $342.6 million, a decrease of $2.7 million compared to the prior quarter. Net interest margin was 2.90% for the first quarter of 2026, compared to 2.98% for the prior quarter. For the first quarter of 2026, our core net interest margin excluding trading activities 1, a non-GAAP measure, was 3.15% compared to 3.22% in the prior quarter.

Current wording

•Net interest income totaled $351.8 million, an increase of $9.3 million over the prior quarter. Net interest margin was 2.91% for the second quarter of 2026, compared to 2.90% for the prior quarter. For the second quarter of 2026, our core net interest margin excluding trading activities 1, a non-GAAP measure, was 3.13% compared to 3.15% in the prior quarter.

Previous wording

Other gains (losses), net, were a net loss of $216 thousand for the first quarter of 2026, compared to a net gain of $28.1 million in the prior quarter. The fourth quarter included a $23.5 million pre-tax gain on the sale of a merchant banking investment. The current quarter included a net loss on investments related to deferred compensation of $1.8 million compared to a net gain of $3.7 million in the prior quarter.

Current wording

•Other gains (losses), net, were a net gain of $42.4 million compared to a net loss of $216 thousand in the prior quarter. The second quarter of 2026 included a $30.9 million pre-tax gain, net of economic hedge, related to the exchange of our Visa shares under the recently announced Exchange Offer by Visa, Inc. The current quarter also included a net gain on investments related to deferred compensation of $8.8 million compared to a net loss of $1.8 million in the prior quarter.

Previous wording

•Period end outstanding loan balances totaled $26.2 billion at March 31, 2026, growing by $536 million over December 31, 2025, with broad-based growth across the loan portfolio, led by general business, energy, and multifamily commercial real estate loans. Average loan balances increased $683 million to $25.9 billion.

Current wording

•Period end outstanding loan balances totaled $27.1 billion at June 30, 2026, up $896 million over March 31, 2026, with broad-based growth across the loan portfolio. Average loan balances increased $844 million to $26.8 billion.

Previous wording

•No provision for expected credit losses was necessary for the first quarter of 2026. The favorable impact of higher projected oil prices on our energy loan portfolio and improved credit quality was offset by loan growth and a slight downward revision to economic forecast assumptions compared to the prior quarter. Net charge-offs in the first quarter were $1.9 million, or 0.03% of average loans on an annualized basis. The resulting combined allowance for credit losses totaled $323 million, or 1.23% of outstanding loans at March 31, 2026. The combined allowance for credit losses was $327 million, or 1.28% of outstanding loans at December 31, 2025.

Current wording

•No provision for expected credit losses was necessary for the second quarter of 2026. An improvement in economic forecast assumptions, including GDP growth, lower unemployment, and improved vacancy rates compared to the prior quarter, was offset by the impact of loan growth during the quarter. Net charge-offs in the second quarter were $500 thousand, or 0.01% of average loans on an annualized basis. The resulting combined allowance for credit losses totaled $323 million, or 1.19% of outstanding loans at June 30, 2026. The combined allowance for credit losses was $323 million, or 1.23% of outstanding loans at March 31, 2026.

Previous wording

•Nonperforming assets not guaranteed by U.S. government agencies were $52 million, a $14 million decrease compared to December 31, 2025. Accruing substandard loans decreased by $5.5 million while other loans especially mentioned decreased by $31 million compared to December 31, 2025.

Current wording

•Nonperforming assets not guaranteed by U.S. government agencies were $55 million, a $2.8 million increase compared to March 31, 2026. Accruing substandard loans decreased by $19 million while other loans especially mentioned decreased by $8.3 million compared to March 31, 2026.

Previous wording

•Period end deposits decreased by $758 million to $38.7 billion at March 31, 2026. Average deposits decreased $1.0 billion, including a $692 million decrease in average interest-bearing deposits and a $315 million reduction in demand deposit balances. The loan to deposit ratio was 68% at March 31, 2026, compared to 65% at December 31, 2025.

Current wording

•Period end deposits increased by $1.2 billion to $39.9 billion at June 30, 2026. Average deposits increased $250 million, including a $261 million increase in average interest-bearing deposits and an $11 million decrease in average demand deposit balances. The loan to deposit ratio was 68% at June 30, 2026, consistent with the prior quarter.

Previous wording

•The Company's tangible common equity ratio 1, a non-GAAP measure, was 9.29% at March 31, 2026, and 9.46% at December 31, 2025. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on AFS securities.

Current wording

•The Company's tangible common equity ratio 1, a non-GAAP measure, was 9.61% at June 30, 2026, and 9.29% at March 31, 2026. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on AFS securities.

Previous wording

•The common equity Tier 1 capital ratio at March 31, 2026, was 12.61%. Other regulatory capital ratios include the Tier 1 capital ratio at 12.61%, total capital ratio at 14.39%, and leverage ratio at 9.85%. At December 31, 2025, the common equity Tier 1 capital ratio was 12.90%, the Tier 1 capital ratio was 12.90%, the total capital ratio was 14.77%, and the leverage ratio was 9.86%.

Current wording

•The common equity Tier 1 capital ratio at June 30, 2026, was 12.89%. Other regulatory capital ratios include the Tier 1 capital ratio at 12.89%, total capital ratio at 14.67%, and leverage ratio at 9.81%. At March 31, 2026, the common equity Tier 1 capital ratio was 12.61%, the Tier 1 capital ratio was 12.61%, the total capital ratio was 14.39%, and the leverage ratio was 9.85%.

Previous wording

•The Company paid a regular cash dividend of $38.1 million, or $0.63 per common share, during the first quarter of 2026. On May 5, 2026, the Board approved a quarterly cash dividend of $0.63 per common share payable on or about May 27, 2026, to shareholders of record as of May 13, 2026.

Current wording

•The Company paid a regular cash dividend of $38.1 million, or $0.63 per common share, during the second quarter of 2026. On August 4, 2026, the Board approved a quarterly cash dividend of $0.63 per common share payable on or about September 2, 2026, to shareholders of record as of August 19, 2026.

Previous wording

Highlights of the three months ended March 31, 2026, compared to the three months ended March 31, 2025 included:

Current wording

Highlights of the six months ended June 30, 2026, compared to the six months ended June 30, 2025 included:

Previous wording

•Net income for the three months ended March 31, 2026 totaled $155.8 million, or $2.58 per diluted share, compared to $119.8 million, or $1.86 per diluted share, for the three months ended March 31, 2025.

Current wording

•Net income for the six months ended June 30, 2026 totaled $332.3 million, or $5.49 per diluted share, compared to $259.8 million, or $4.05 per diluted share, for the six months ended June 30, 2025.

Previous wording

•Net interest income totaled $342.6 million for the three months ended March 31, 2026, and $316.3 million for the three months ended March 31, 2025. Net interest income increased $16.5 million from changes in interest rates and increased $9.9 million from changes in earning assets. Net interest margin was 2.90% compared to 2.78%. The AFS securities portfolio yield increased 11 basis points, while the yield on trading securities decreased 43 basis points. Funding costs decreased 50 basis points. The cost of interest-bearing deposits was down 53 basis points. Average earning assets increased $2.2 billion to $47.8 billion, largely driven by higher average balances for loans and AFS securities, partially offset by a decrease in average trading securities. Total interest-bearing deposits increased $1.1 billion, partially offset by a decrease of $462 million in demand deposit balances. Other borrowed funds increased $711 million and average subordinated debentures increased $265 million.

Current wording

•Net interest income totaled $694.4 million for the six months ended June 30, 2026, and $644.4 million for the six months ended June 30, 2025. Net interest income increased $31.4 million from changes in interest rates and increased $18.7 million from changes in earning assets. Net interest margin was 2.91% compared to 2.79%. The AFS securities portfolio yield increased 10 basis points, while the yield on trading securities decreased 31 basis points. The loan portfolio yield decreased 49 basis points. Funding costs decreased 49 basis points. The cost of interest-bearing deposits was down 51 basis points. Average earning assets increased $2.0 billion to $48.3 billion, largely driven by higher average balances for loans and AFS securities, partially offset by a decrease in average trading securities. Total interest-bearing deposits increased $1.2 billion, partially offset by a decrease of $369 million in demand deposit balances. Other borrowed funds increased $676 million and average subordinated debentures increased $281 million.

Previous wording

•Fees and commissions revenue totaled $209.8 million for the three months ended March 31, 2026, a $25.7 million increase over the three months ended March 31, 2025. Brokerage and trading revenue increased $12.5 million, largely due to higher trading volumes and improved trading margins on U.S. agency residential mortgage-backed securities. Fiduciary and asset management revenue increased $5.5 million led by growth in trust fees related to higher market valuations and continued growth in client relationships. Transaction card revenue increased $4.9 million due to disciplined pricing strategies, targeted customer acquisition efforts, and an increase in the volume of transactions processed during the period. Deposit service charges increased $1.9 million due to growth in commercial service charges.

Current wording

•Fees and commissions revenue totaled $411.8 million for the six months ended June 30, 2026, a $30.3 million increase over the six months ended June 30, 2025. Fiduciary and asset management revenue increased $12.6 million led by growth in trust fees related to higher market valuations and continued growth in client relationships. Brokerage and trading revenue increased $6.9 million. Trading revenue increased $3.4 million led by higher municipal bond and government agency trading activities, partially offset by decreased U.S. agency residential mortgage-backed securities trading volumes. Investment banking revenue increased $2.8 million driven by growth in syndication fees. Transaction card revenue increased $6.9 million due to disciplined pricing strategies, targeted customer acquisition efforts, and an increase in the volume of transactions processed during the period. Deposit service charges increased $4.0 million, primarily due to growth in commercial service charges.

Previous wording

•Total operating expense was $354 million for the three months ended March 31, 2026, an increase of $6.6 million over the three months ended March 31, 2025. Personnel expense decreased $3.0 million. Employee benefits expense decreased $5.3 million due to a combination of lower retirement plan costs and employee healthcare costs. Regular compensation increased $1.9 million, largely related to annual merit increases given to most employees in March. Non-personnel expense increased $9.6 million. Data processing and communications expense was up $4.2 million, largely driven by costs associated with ongoing projects. Mortgage banking costs grew $4.1 million due to increased prepayments.

Current wording

•Total operating expense was $715.8 million for the six months ended June 30, 2026, an increase of $13.8 million over the six months ended June 30, 2025. Personnel expense decreased $3.6 million. Employee benefits expense decreased $9.4 million due to a combination of lower retirement plan costs and employee healthcare costs. Deferred compensation expense increased $6.7 million, while share-based compensation costs decreased $2.0 million due to changes in assumptions of certain performance-based equity awards. Non-personnel expense increased $17.4 million. Mortgage banking costs grew $9.2 million due to increased prepayments. Data processing and communications expense was up $6.3 million, largely driven by costs associated with ongoing projects.

Previous wording

Net interest income is the interest earned on debt securities, loans, and other interest-earning assets less interest paid for interest-bearing deposits and other borrowings. The net interest margin is calculated by dividing tax-equivalent net interest income by average interest-earning assets. Net interest spread is the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin is typically greater than net interest spread due to interest revenue earned on assets funded by non-interest bearing liabilities such as demand deposits and equity.

Current wording

Net interest income is the interest earned on debt securities, loans, and other interest-earning assets less interest paid for interest-bearing deposits and other borrowings. The net interest margin is calculated by dividing tax-equivalent net interest income by average interest-earning assets. Net interest spread is the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin is typically greater than net interest spread due to interest revenue earned on assets funded by noninterest-bearing liabilities such as demand deposits and equity.

Previous wording

Tax-equivalent net interest income totaled $345.2 million for the first quarter of 2026, compared to $347.8 million in the prior quarter. Net interest income increased $464 thousand from changes in interest rates and decreased $3.1 million from changes in earning assets. Table 1 shows the effect on net interest income from changes in average balances and interest rates for various types of earning assets and interest-bearing liabilities.

Current wording

Tax-equivalent net interest income totaled $354.5 million for the second quarter of 2026, compared to $345.2 million in the prior quarter. Net interest income increased $5.7 million from changes in interest rates and increased $3.7 million from changes in earning assets. Table 1 shows the effect on net interest income from changes in average balances and interest rates for various types of earning assets and interest-bearing liabilities.

Previous wording

Average earning assets increased $1.2 billion over the fourth quarter of 2025. Average loan balances increased $683 million, primarily from broad-based growth across the loan portfolio. The average balance of trading securities increased $322 million and average restricted equity securities increased $111 million.

Current wording

Average earning assets increased $1.0 billion over the first quarter of 2026. Average loan balances increased $844 million, with broad-based growth across the loan portfolio. The average balance of trading securities increased $259 million and average restricted equity securities increased $100 million.

Previous wording

Total average deposits decreased $1.0 billion compared to the fourth quarter of 2025, including a $692 million decrease in interest-bearing deposits and a $315 million decrease in demand deposits. Average funds purchased and repurchase agreements decreased $261 million, while average other borrowings increased $2.3 billion. Average subordinated debentures increased $155 million, driven by the full quarter impact of the subordinated debt issued in the fourth quarter.

Current wording

Total average deposits increased $250 million compared to the first quarter of 2026, including a $261 million increase in interest-bearing deposits and an $11 million decrease in demand deposits. Average funds purchased and repurchase agreements decreased $403 million, while average other borrowings increased $1.6 billion.

Previous wording

Net interest margin was 2.90% compared to 2.98% in the fourth quarter of 2025. For the first quarter of 2026, our core net interest margin excluding trading activities 1, a non-GAAP measure, was 3.15% compared to 3.22% in the prior quarter. The tax-equivalent yield on average earning assets was 5.23%, a decrease of 13 basis points. The loan portfolio yield decreased 23 basis points to 6.25%. The yield on trading securities decreased 19 basis points to 4.64%, while the yield on restricted equity securities increased 17 basis points to 7.39%.

Current wording

The tax-equivalent yield on average earning assets was 5.27%, an increase of 4 basis points. The yield on trading securities increased 21 basis points to 4.85%, while the yield on restricted equity securities increased 27 basis points to 7.66%.

Previous wording

Funding costs were 2.92%, a 14 basis point decrease compared to the prior quarter. The cost of interest-bearing deposits decreased 20 basis points to 2.71%. The cost of funds purchased and repurchase agreements decreased 57 basis points to 2.90%, while the cost of other borrowings decreased 32 basis points to 3.90%. The benefit to net interest margin from assets funded by non-interest liabilities was 59 basis points, a decrease of 9 basis points.

Current wording

Funding costs were 2.93%, a 1 basis point increase over the prior quarter. The cost of interest-bearing deposits decreased 4 basis points to 2.67%. The cost of funds purchased and repurchase agreements increased 19 basis points to 3.09%, while the cost of other borrowings decreased 2 basis points to 3.88%. The benefit to net interest margin from assets funded by noninterest-bearing liabilities was 57 basis points, a decrease of 2 basis points.

Previous wording

Our overall objective is to manage the Company's balance sheet for changes in interest rates as described in the Market Risk section of this report. Approximately 84% of our commercial and commercial real estate loan portfolios are either variable rate loans or fixed rate loans that will reprice within one year. These loans are funded primarily by deposit accounts that are either non-interest bearing, or that reprice more slowly than the loans. The result is a balance sheet that is asset sensitive, meaning that assets generally reprice more quickly than the liabilities. One of the strategies that we use to manage toward a relative rate-neutral position is to purchase fixed-rate residential mortgage-backed securities issued primarily by U.S. government agencies and fund them with market rate-sensitive liabilities. The liability-sensitive nature of this strategy provides an offset to the asset-sensitive characteristics of our loan portfolio. We also may use derivative instruments to manage our interest rate risk.

Current wording

Our overall objective is to manage the Company's balance sheet for changes in interest rates as described in the Market Risk section of this report. At June 30, 2026, approximately 84% of our commercial and commercial real estate loan portfolios are either variable rate loans or fixed rate loans that will reprice within one year. These loans are funded primarily by deposit accounts that are either noninterest-bearing or that reprice more slowly than the loans. The result is a balance sheet that is asset sensitive, meaning that assets generally reprice more quickly than the liabilities. One of the strategies that we use to manage toward a relative rate-neutral position is to purchase fixed-rate residential mortgage-backed securities issued primarily by U.S. government agencies and fund them with market rate-sensitive liabilities. The liability-sensitive nature of this strategy provides an offset to the asset-sensitive characteristics of our loan portfolio. We also may use derivative instruments to manage our interest rate risk.

Previous wording

Diversified sources of fees and commissions revenue are a significant part of our business strategy and represented 38% of combined net interest income before provision for expected credit losses and fees and commissions revenue for the first quarter of 2026. We believe that a variety of fee revenue sources provides diversification to changes resulting from market or economic conditions such as interest rates, values in the equity markets, commodity prices, and consumer spending, all of which can be volatile. Many of the economic factors, such as decreasing interest rates, that we expect will result in a decline in net interest income or fiduciary and asset management revenue may also increase mortgage banking production volumes and related trading. The velocity of changes in market conditions and interest rates may result in timing differences between when offsetting impacts and benefits are realized. Generally, for operating revenues not as directly related to movement in interest rates, we expect growth to come through offering new products and services and by further development of our presence in other markets. However, current and future economic conditions, regulatory constraints, increased competition, and saturation in our existing markets could affect the rate of future increases.

Current wording

Diversified sources of fees and commissions revenue are a significant part of our business strategy and represented 36% of combined net interest income before provision for expected credit losses and fees and commissions revenue for the second quarter of 2026. We believe that a variety of fee revenue sources provides diversification to changes resulting from market or economic conditions such as interest rates, values in the equity markets, commodity prices, and consumer spending, all of which can be volatile. Many of the economic factors, such as decreasing interest rates, that we expect will result in a decline in net interest income or fiduciary and asset management revenue may also increase mortgage banking production volumes and related trading. The velocity of changes in market conditions and interest rates may result in timing differences between when offsetting impacts and benefits are realized. Generally, for operating revenues not as directly related to movement in interest rates, we expect growth to come through offering new products and services and by further development of our presence in other markets. However, current and future economic conditions, regulatory constraints, increased competition, and saturation in our existing markets could affect the rate of future increases.

Previous wording

Brokerage and trading revenue, which includes revenues from trading, customer hedging, retail brokerage, and investment banking, decreased $3.7 million compared to the fourth quarter of 2025.

Current wording

Brokerage and trading revenue, which includes revenues from trading, customer hedging, retail brokerage, and investment banking, decreased $11.2 million compared to the first quarter of 2026.

Previous wording

Trading revenue includes net realized and unrealized gains and losses primarily related to residential mortgage-backed securities guaranteed by U.S. government agencies and related derivative instruments that enable our mortgage banking customers to manage their production risk. Trading revenue also includes net realized and unrealized gains and losses on municipal securities and other financial instruments that we sell to institutional customers, along with changes in the fair value of financial instruments we hold as economic hedges against market risk of our trading securities. Trading revenue decreased $1.6 million to $19.3 million, primarily due to a shift from fee revenue to net interest income on trading securities. Interest rate levels and curve steepness can result in a shift between trading revenue and net interest income from trading securities. See further discussion on a total revenue basis in the Wealth Management discussion in Management's Discussion and Analysis - Reportable Segments following.

Current wording

Trading revenue includes net realized and unrealized gains and losses primarily related to residential mortgage-backed securities guaranteed by U.S. government agencies and related derivative instruments that enable our mortgage banking customers to manage their production risk. Trading revenue also includes net realized and unrealized gains and losses on municipal securities and other financial instruments that we sell to institutional customers, along with changes in the fair value of financial instruments we hold as economic hedges against market risk of our trading securities. Trading revenue decreased $12.7 million to $6.7 million, primarily due to lower trading volumes resulting from interest rate market volatility during the quarter. Interest rate levels and curve steepness can result in a shift between trading revenue and net interest income from trading securities. See further discussion on a total revenue basis in the Wealth Management discussion in Management's Discussion and Analysis - Reportable Segments following.

Previous wording

Customer hedging revenue is based primarily on realized and unrealized changes in the fair value of derivative contracts held for customer risk management programs. As more fully discussed under Customer Risk Management Programs in Note 3 of the Consolidated Financial Statements, we offer commodity, interest rate, foreign exchange, and equity derivatives to our customers. Customer hedging revenue totaled $7.8 million for the first quarter of 2026, an increase of $1.1 million over the prior quarter, as our energy customers increased hedging activity in response to the rapid rise in crude oil prices during the quarter. Customer hedging revenue includes credit valuation adjustments of the fair value of derivatives to reflect the risk of counterparty default.

Current wording

Customer hedging revenue is based primarily on realized and unrealized changes in the fair value of derivative contracts held for customer risk management programs. As more fully discussed under Customer Risk Management Programs in Note 3 of the Consolidated Financial Statements, we offer commodity, interest rate, foreign exchange, and equity derivatives to our customers. Customer hedging revenue totaled $6.7 million for the second quarter of 2026, a decrease of $1.1 million compared to the prior quarter, primarily due to a decline in hedging activity from our energy customers. Customer hedging revenue includes credit valuation adjustments of the fair value of derivatives to reflect the risk of counterparty default.

Previous wording

Investment banking revenue, which includes fees earned upon completion of underwriting, financial advisory services, and loan syndication fees, totaled $10.2 million, a decrease of $4.1 million compared to the prior quarter, driven by lower syndication fees and municipal underwriting activity, primarily due to seasonality and volume of transactions.

Current wording

Investment banking revenue, which includes fees earned upon completion of underwriting, financial advisory services, and loan syndication fees, totaled $13.4 million, an increase of $3.2 million compared to the prior quarter, largely related to the timing and volume of completed loan syndication transactions.

Previous wording

Transaction card revenue includes revenues from processing transactions on behalf of members of our TransFund electronic fund transfer network, merchant services fees paid by customers for account management and electronic processing of card transactions, and interchange fees from our corporate card program. Transaction card revenue totaled $32.0 million for the first quarter of 2026, consistent with the prior quarter.

Current wording

Transaction card revenue includes revenues from processing transactions on behalf of members of our TransFund electronic fund transfer network, merchant services fees paid by customers for account management and electronic processing of card transactions, and interchange fees from our corporate card program. Transaction card revenue totaled $31.6 million for the second quarter of 2026, consistent with the prior quarter.

Previous wording

Fiduciary and asset management revenue is earned through managing or holding of assets for customers and executing transactions or providing related services. Fiduciary and asset management revenue is largely based on the fair value of assets. Rates applied to asset values vary based on the nature of the relationship. Fiduciary relationships and managed asset relationships generally have higher fee rates than non-fiduciary and/or non-managed relationships. Fiduciary and asset management revenue was $66.5 million for the first quarter of 2026, a decrease of $1.9 million as the prior quarter included transaction-related fees that did not recur in the current quarter.

Current wording

Fiduciary and asset management revenue is earned through managing or holding of assets for customers and executing transactions or providing related services. Fiduciary and asset management revenue is largely based on the fair value of assets. Rates applied to asset values vary based on the nature of the relationship. Fiduciary relationships and managed asset relationships generally have higher fee rates than non-fiduciary and/or non-managed relationships. Fiduciary and asset management revenue was $71.0 million for the second quarter of 2026, an increase of $4.5 million, primarily related to seasonal tax preparation fee income combined with increased trust fees from higher market valuations and growth in client relationships.

Previous wording

1 Assets under management or administration balance excludes certain assets under custody held by a sub-custodian where minimal revenue is recognized. $22 billion, $23 billion, and $20 billion of such assets are excluded from assets under management or administration at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Current wording

1 Assets under management or administration balance excludes certain assets under custody held by a sub-custodian where minimal revenue is recognized. $24 billion, $22 billion, and $22 billion of such assets are excluded from assets under management or administration at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Previous wording

A summary of changes in assets under management or administration for the three months ended March 31, 2026, and 2025 follows:

Current wording

A summary of changes in assets under management or administration for the three and six months ended June 30, 2026, and 2025 follows:

Previous wording

Assets under management or administration as of March 31, 2026, consist of 42% fixed income, 35% equities, 15% cash, and 8% alternative investments.

Current wording

Assets under management or administration as of June 30, 2026, consist of 41% fixed income, 37% equities, 14% cash, and 8% alternative investments.

Previous wording

Mortgage banking revenue increased $2.0 million over the fourth quarter of 2025 due to an increase in mortgage production volumes and higher refinancing activity. Mortgage production volume increased $53.9 million to $265 million. Production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, was 1.48% for the first quarter of 2026, compared to 0.93% for the fourth quarter of 2025.

Current wording

Mortgage banking revenue decreased $2.0 million compared to the first quarter of 2026, primarily due to lower refinancing activity. Mortgage production volume decreased $2.8 million to $263 million. Production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, was 0.83% for the second quarter of 2026, compared to 1.48% for the first quarter of 2026.

Previous wording

The effective tax rate was 22.01% for the first quarter of 2026, 22.42% for the fourth quarter of 2025, and 22.61% for the first quarter of 2025. The effective rate for the first quarter of 2026 decreased compared to the fourth quarter of 2025 primarily due to the increase in excess tax benefits from vested share-based compensation.

Current wording

The effective tax rate was 22.46% for the second quarter of 2026, 22.01% for the first quarter of 2026, and 22.51% for the second quarter of 2025. The effective rate for the second quarter of 2026 increased compared to the first quarter of 2026 primarily due to the decrease in excess tax benefits from vested share-based compensation.

Previous wording

In addition to our reportable segments, we have a Funds Management unit. The primary purpose of this unit is to manage our overall liquidity needs and interest rate risk. Each segment borrows funds from and provides funds to the Funds Management unit as needed to support their operations. Operating results for Funds Management and Other include the effect of interest rate risk positions and risk management activities, securities gains and losses including impairment charges, the provision for credit losses in excess of net loans charged off, tax planning strategies, and certain executive compensation costs that are not attributed to the segments. The Funds Management unit also initially recognizes accruals for loss contingencies when losses become probable. Actual losses are recognized by the applicable segment if the accruals are settled.

Current wording

In addition to our reportable segments, we have a Funds Management unit. The primary purpose of this unit is to manage our overall liquidity needs and interest rate risk. Each segment borrows funds from and provides funds to the Funds Management unit as needed to support their operations. Operating results for Funds Management include the effect of interest rate risk positions and risk management activities, securities gains and losses including impairment charges, the provision for credit losses in excess of net loans charged off, tax planning strategies, and certain executive compensation costs that are not attributed to the segments. The Funds Management unit also initially recognizes accruals for loss contingencies when losses become probable. Actual losses are recognized by the applicable segment if the accruals are settled.

Previous wording

As shown in Table 8, net income before taxes attributable to our segments was $191.5 million in the first quarter of 2026 compared to $219.9 million in the fourth quarter of 2025. Net interest income decreased $9.7 million due to lower deposit spreads and a shift away from demand deposits, partially offset by increased loan volumes. Other operating revenue decreased $27.2 million, primarily resulting from the sale of a merchant banking investment in the fourth quarter of 2025. Other operating expense decreased $11.7 million. Personnel expense decreased $8.0 million. The decrease was primarily driven by lower incentive compensation expenses following strong prior quarter results in both commercial and wealth production volumes. In addition, regular compensation expense normalized this quarter, as the majority of transitional personnel costs from talent base alignment were recognized in the prior quarter. Non-personnel expense decreased $3.7 million. Corporate expense allocations increased $2.6 million.

Current wording

As shown in Table 8, net income before taxes attributable to our segments was $194.7 million in the second quarter of 2026 compared to $191.5 million in the first quarter of 2026. Net interest income increased $9.8 million due to increased loan volumes and beneficial repricing of deposits. Other operating revenue decreased $9.7 million. Brokerage and trading revenue was down $12.7 million, primarily due to lower trading volumes resulting from interest rate market volatility during the quarter. This decrease was partially offset by growth in fiduciary and asset management revenue related to seasonal tax preparation fee income combined with increased trust fees from higher market valuations and growth in client relationships. Other operating expense decreased $4.2 million. Personnel expense decreased $5.1 million, primarily due to lower cash-based incentive compensation costs driven by the decrease in trading activity. Non-personnel expense was consistent with the prior quarter. Corporate expense allocations increased $2.6 million.

Previous wording

Commercial Banking contributed $134.8 million to consolidated net income before taxes in the first quarter of 2026, compared to $162.1 million in the fourth quarter of 2025.

Current wording

Commercial Banking contributed $146.2 million to consolidated net income before taxes in the second quarter of 2026, an increase of $11.4 million over the first quarter of 2026.

Previous wording

Average outstanding loan balances attributed to Commercial Banking increased $582 million, or 3%, over the fourth quarter of 2025, to $21.2 billion. See the Loans section of Management's Discussion and Analysis of Financial Condition and Results of Operations following for additional discussion of changes in commercial and commercial real estate loans, which are primarily attributed to the Commercial Banking segment.

Current wording

Average outstanding loan balances attributed to Commercial Banking increased $770 million, or 4%, over the first quarter of 2026, to $22.0 billion. See the Loans section of Management's Discussion and Analysis of Financial Condition and Results of Operations following for additional discussion of changes in commercial and commercial real estate loans, which are primarily attributed to the Commercial Banking segment.

Previous wording

Average deposits attributed to Commercial Banking decreased $186 million, or 1%, compared to the fourth quarter of 2025, to $18.3 billion. See Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital for further discussion of changes.

Current wording

Average deposits attributed to Commercial Banking increased $612 million, or 3%, compared to the first quarter of 2026, to $18.9 billion. See Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital for further discussion of changes.

Previous wording

Consumer Banking contributed $19.2 million to consolidated net income before taxes for the first quarter of 2026, compared to $15.1 million in the fourth quarter of 2025.

Current wording

Consumer Banking contributed $13.6 million to consolidated net income before taxes for the second quarter of 2026, compared to $19.2 million in the first quarter of 2026.