BOK FINANCIAL CORP

Previous 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.

Current wording

BOK Financial reported net income of $159.9 million, or $2.64 per diluted share, for the third quarter of 2026 compared to $176.5 million, or $2.92 per diluted share, for the second quarter of 2026. Prior quarter net income would have been $156.5 million, or $2.59 per diluted share, excluding the net gain related to the exchange of Visa B shares and the loss from repositioning of the available-for-sale securities portfolio. PPNR 1, a non-GAAP measure, was $200.8 million for the third quarter of 2026, compared to $227.7 million in the second quarter of 2026.

Previous 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.

Current wording

•Net interest income totaled $370.0 million, an increase of $18.1 million over the prior quarter. Net interest margin was 3.00% for the third quarter of 2026, compared to 2.91% for the prior quarter. For the third quarter of 2026, our core net interest margin excluding trading activities 1, a non-GAAP measure, was 3.21% compared to 3.13% in the prior quarter.

Previous 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.

Current wording

•Other gains, net, were a net gain of $5.7 million compared to a net gain of $42.4 million 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 B shares under the Exchange Offer by Visa, Inc. The current quarter included a net gain on investments related to deferred compensation of $1.8 million compared to a net gain of $8.8 million in the prior quarter.

Previous 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.

Current wording

•No provision for expected credit losses was necessary for the third quarter of 2026. An improvement in economic forecast assumptions, primarily GDP growth and lower unemployment, compared to the prior quarter, was offset by the impact of loan growth during the quarter. Net charge-offs in the third quarter were $886 thousand, or 0.01% of average loans on an annualized basis. The resulting combined allowance for credit losses totaled $322 million, or 1.16% of outstanding loans at September 30, 2026. The combined allowance for credit losses was $323 million, or 1.19% of outstanding loans at June 30, 2026.

Previous 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.

Current wording

•Nonperforming assets not guaranteed by U.S. government agencies were $58 million, a $3.3 million increase compared to June 30, 2026. Accruing substandard loans increased by $89 million while other loans especially mentioned decreased by $18 million compared to June 30, 2026.

Previous 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.

Current wording

•Period end deposits decreased $324 million to $39.5 billion at September 30, 2026. Average deposits increased $304 million, including a $278 million increase in average interest-bearing deposits and a $26 million increase in average demand deposit balances. The loan to deposit ratio was 70% at September 30, 2026, compared to 68% at June 30, 2026.

Previous wording

•Assets under management or administration totaled $129.3 billion at June 30, 2026, increasing $5.7 billion over March 31, 2026, led by increased market valuations and continued customer expansion.

Current wording

•Assets under management or administration totaled $129.3 billion at September 30, 2026, consistent with the prior quarter.

Previous 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.

Current wording

•The Company's tangible common equity ratio 1, a non-GAAP measure, was 9.16% at September 30, 2026, and 9.61% at June 30, 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 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%.

Current wording

•The common equity Tier 1 capital ratio at September 30, 2026, was 12.73%. Other regulatory capital ratios include the Tier 1 capital ratio at 12.73%, total capital ratio at 14.43%, and leverage ratio at 9.95%. At June 30, 2026, the common equity Tier 1 capital ratio was 12.89%, the Tier 1 capital ratio was 12.89%, the total capital ratio was 14.67%, and the leverage ratio was 9.81%.

Previous 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.

Current wording

•The Company paid a regular cash dividend of $38.1 million, or $0.63 per common share, during the third quarter of 2026. On November 3, 2026, the Board approved an increase in the quarterly cash dividend to $0.78 per common share payable on or about December 3, 2026, to shareholders of record as of November 18, 2026.

Previous wording

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

Current wording

Highlights of the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025 included:

Previous 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.

Current wording

•Net income for the nine months ended September 30, 2026 totaled $492.2 million, or $8.14 per diluted share, compared to $400.7 million, or $6.27 per diluted share, for the nine months ended September 30, 2025.

Previous 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.

Current wording

•Net interest income totaled $1.1 billion for the nine months ended September 30, 2026, and $982.1 million for the nine months ended September 30, 2025. Net interest income increased $49.2 million from changes in interest rates and increased $33.4 million from changes in earning assets. Net interest margin was 2.94% compared to 2.83%. The AFS securities portfolio yield increased 13 basis points, while the yield on trading securities decreased 24 basis points. The loan portfolio yield decreased 48 basis points. Funding costs decreased 44 basis points. The cost of interest-bearing deposits was down 48 basis points. Average earning assets increased $2.3 billion to $48.7 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 $307 million in average demand deposit balances. Other borrowed funds increased $993 million and average subordinated debentures increased $320 million.

Previous 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.

Current wording

•Fees and commissions revenue totaled $599.7 million for the nine months ended September 30, 2026, a $13.8 million increase over the nine months ended September 30, 2025. Fiduciary and asset management revenue increased $18.5 million led by growth in trust fees related to higher market valuations and continued growth in client relationships. Transaction card revenue increased $9.7 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 $6.2 million led by higher overdraft fees and commercial service charges. Brokerage and trading revenue decreased $16.9 million. Trading revenue decreased $18.4 million, primarily due to lower fixed-income trading volumes and an unfavorable rate environment.

Previous wording

•Other gains (losses), net, increased $34.8 million as the six months ended June 30, 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.

Current wording

•Other gains, net, increased $32.2 million as the nine months ended September 30, 2026 included a $30.9 million pre-tax gain, net of economic hedge, related to the exchange of our Visa shares under the Exchange Offer by Visa, Inc.

Previous 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.

Current wording

•Total operating expense was $1.1 billion for the nine months ended September 30, 2026, an increase of $4.7 million over the nine months ended September 30, 2025. Personnel expense decreased $16.7 million. Employee benefits expense decreased $12.9 million due to a combination of lower retirement plan costs and employee healthcare costs. Cash-based incentive compensation expense decreased $5.7 million, primarily due to lower trading activity. Non-personnel expense increased $21.4 million. Data processing and communications expense was up $10.6 million, largely driven by costs associated with ongoing projects. Mortgage banking costs grew $9.2 million due to increased prepayments.

Previous 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.

Current wording

Tax-equivalent net interest income totaled $372.7 million for the third quarter of 2026, compared to $354.5 million in the prior quarter. Net interest income increased $9.8 million from changes in interest rates and increased $8.3 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 $1.0 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.

Current wording

Average earning assets increased $633 million over the second quarter of 2026. Average loan balances increased $468 million. The average balance of AFS securities was up $300 million and average trading securities increased $31 million.

Previous 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.

Current wording

Total average deposits increased $304 million compared to the second quarter of 2026, including a $278 million increase in interest-bearing deposits and a $26 million increase in demand deposits. Average other borrowings increased $241 million, while average funds purchased and repurchase agreements decreased $145 million.

Previous wording

Net interest margin was 2.91% compared to 2.90% in the first quarter of 2026. 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. Net interest margin benefited from favorable repricing of fixed-rate assets and deposits. During the quarter, these positive drivers were partially offset by a 3 basis point impact from cash margin posted on behalf of our energy customers as oil prices increased during the quarter.

Current wording

Net interest margin was 3.00% compared to 2.91% in the second quarter of 2026. For the third quarter of 2026, our core net interest margin excluding trading activities 1, a non-GAAP measure, was 3.21% compared to 3.13% in the prior quarter. Net interest income and margin benefited from loan growth and favorable repricing of fixed-rate assets.

Previous 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%.

Current wording

The tax-equivalent yield on average earning assets was 5.37%, an increase of 10 basis points. The loan portfolio yield increased 4 basis points to 6.24%. The yield on trading securities increased 30 basis points to 5.15% and the yield on available-for-sale securities increased 13 basis points to 4.11%.

Previous 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.

Current wording

Funding costs were 2.96%, a 3 basis point increase over the prior quarter. The cost of interest-bearing deposits increased 3 basis points to 2.70%. The cost of other borrowings increased 2 basis points to 3.90%, while the cost of funds purchased and repurchase agreements decreased 2 basis points to 3.07%. The benefit to net interest margin from assets funded by noninterest-bearing liabilities was 59 basis points, an increase 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. 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.

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 September 30, 2026, approximately 85% 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 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.

Current wording

Diversified sources of fees and commissions revenue are a significant part of our business strategy and represented 34% of combined net interest income before provision for expected credit losses and fees and commissions revenue for the third 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 $11.2 million compared to the first quarter of 2026.

Current wording

Brokerage and trading revenue, which includes revenues from trading, customer hedging, retail brokerage, and investment banking, decreased $13.0 million compared to the second 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 $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.

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 $13.0 million to a net loss of $6.3 million compared to the prior quarter, primarily due to an unfavorable rate environment and lower fixed-income trading volumes during the quarter. The nearly 80 basis point increase in the 10-year Treasury yield reduced customer demand for fixed-income products and mortgage-related activity, resulting in lower transaction volumes and trading revenues. 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 $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.

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 $5.8 million for the third quarter of 2026, consistent with the prior quarter. 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 $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.

Current wording

Investment banking revenue, which includes fees earned upon completion of underwriting, financial advisory services, and loan syndication fees, totaled $14.3 million, an increase of $896 thousand over the prior quarter. A $4.3 million increase driven by municipal underwriting activity was partially offset by lower syndication fees, which returned to normal levels following a strong second quarter.

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 $31.6 million for the second 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 $32.2 million for the third quarter of 2026, an increase of $608 thousand over 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 $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.

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 $69.9 million for the third quarter of 2026, a decrease of $1.1 million, as the prior quarter benefited from seasonal tax preparation fees. Excluding this seasonal revenue, fiduciary and asset management revenue increased over the prior quarter.

Previous 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.

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, $24 billion, and $23 billion of such assets are excluded from assets under management or administration at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

Previous wording

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

Current wording

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

Previous 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.

Current wording

Mortgage banking revenue decreased $2.2 million compared to the second quarter of 2026, driven by a decline in mortgage production volume and spreads due to rising mortgage interest rates. Mortgage production volume decreased $52 million to $211 million. Production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, was 0.06% for the third quarter of 2026, compared to 0.83% for the second quarter of 2026.

Previous wording

Other gains (losses), net, were a net gain of $42.4 million for the second quarter of 2026, 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. See further discussion in the Securities section of Management's Discussion and Analysis of Financial Condition and Results of Operations. 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.

Current wording

Other gains, net, were a net gain of $5.7 million for the third quarter of 2026, compared to a net gain of $42.4 million 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 Exchange Offer by Visa, Inc. See further discussion in the Securities section of Management's Discussion and Analysis of Financial Condition and Results of Operations. The current quarter also included a net gain on investments related to deferred compensation of $1.8 million compared to a net gain of $8.8 million in the prior quarter.

Previous wording

•Losses on available-for-sale securities, net, were $4.6 million in the second quarter of 2026 as we repositioned the portfolio by selling approximately $268 million of lower-yielding debt securities.

Current wording

The prior quarter included losses on available-for-sale securities, net, of $4.6 million as we repositioned the portfolio by selling approximately $268 million of lower-yielding debt securities.

Previous wording

As discussed in the Market Risk section following, the fair value of our MSRs changes in response to changes in primary mortgage loan rates and other assumptions. We attempt to mitigate the earnings volatility caused by changes in the fair value of MSRs by designating certain financial instruments as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSRs.

Current wording

As discussed in the Market Risk section following, the fair value of our MSR changes in response to changes in primary mortgage loan rates and other assumptions. We attempt to mitigate the earnings volatility caused by changes in the fair value of MSR by designating certain financial instruments as an economic hedge. Changes in the fair value of these instruments are generally expected to partially offset changes in the fair value of MSR.

Previous wording

Other operating expense for the second quarter of 2026 totaled $361.7 million, an increase of $7.5 million compared to the first quarter of 2026. The second quarter included $9.1 million of deferred compensation expense fully offset by gains on related investments in Other gains (losses), net. Excluding the impact of deferred compensation, total operating expense decreased $1.4 million. Our efficiency ratio 1 was 60.21% for the second quarter of 2026, compared to 63.21% in the prior quarter. Our efficiency ratio as adjusted for the gain related to the exchange of Visa shares 1 was 63.49% for the second quarter of 2026.

Current wording

Other operating expense for the third quarter of 2026 totaled $360.7 million, largely consistent with the second quarter of 2026. The third quarter included $1.7 million of deferred compensation expense offset by gains on related investments in Other gains, net. Excluding the impact of deferred compensation, total operating expense increased $6.4 million. Our efficiency ratio 1 was 63.52% for the third quarter of 2026, compared to 60.21% in the prior quarter. Our efficiency ratio as adjusted for the gain related to the exchange of Visa shares 1 was 63.49% for the second quarter of 2026.

Previous wording

Personnel expense was $214.1 million, an increase of $2.9 million. Excluding the impact of deferred compensation, personnel costs were down $6.0 million. Cash-based incentive compensation decreased $3.0 million, primarily driven by a decrease in trading activity during the quarter. Employee benefits expense decreased $1.8 million, largely due to a seasonal decrease in payroll taxes, partially offset by higher employee healthcare costs.

Current wording

Personnel expense was stable at $213.3 million for the third quarter of 2026. Excluding the impact of deferred compensation, personnel costs were up $6.5 million. Regular compensation expense increased $3.2 million, primarily reflecting investments in talent, including the addition of revenue-producing personnel. Cash-based incentive compensation increased $1.2 million due to strong loan production during the quarter. Employee benefits expense increased $1.1 million, driven by higher employee healthcare costs, partially offset by a seasonal decrease in payroll taxes.

Previous 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.

Current wording

The effective tax rate was 20.38% for the third quarter of 2026,22.46% for the second quarter of 2026, and 20.22% for the third quarter of 2025. The effective rate for the third quarter of 2026 decreased compared to the second quarter of 2026, primarily due to the release of reserves for uncertain tax positions as the statute of limitations had expired.

Previous 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.

Current wording

As shown in Table 8, net income before taxes attributable to our segments was $184.0 million in the third quarter of 2026 compared to $194.7 million in the second quarter of 2026. Net interest income increased $8.2 million due to increased loan volumes during the quarter. Other operating revenue decreased $14.8 million. Brokerage and trading revenue decreased $11.6 million due to an unfavorable rate environment and lower fixed-income trading volumes. Mortgage banking revenue decreased $2.2 million, driven by a decline in mortgage production volume and spreads due to rising mortgage interest rates. Other operating expense increased $3.9 million. Personnel expense increased $4.5 million, primarily due to increased staffing and higher cash-based incentive compensation costs driven by loan production during the quarter. Non-personnel expense was consistent with the prior quarter. Corporate expense allocations decreased $1.5 million.