Federal and State Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities are as follows (in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Available-for-sale securities mark to market	$	51,019	$	154,277
Credit loss reserves	76,937		78,016
Lease liability	53,274		58,399
Compensation and employee benefits	56,512		51,545
Loan origination fees, net	3,954		4,442




Other	20,799		25,918
Total deferred tax assets	262,495		372,597

Deferred tax liabilities:
Right-of-use asset	44,323		49,249
Mortgage servicing rights	35,971		35,464

Goodwill and intangibles	19,734		20,619
Depreciation	23,038		5,878
Lease financing	4,684		9,342
Other	11,359		20,176
Total deferred tax liabilities	139,109		140,728
Net deferred tax assets	$	123,386	$	231,869

No valuation allowance was necessary on deferred tax assets as of December 31, 2025 and 2024.

The significant components of the provision for income taxes attributable to continuing operations for BOK Financial, all of which are in the United States, are shown below (in thousands):


	Year Ended December 31,
	2025		2024		2023
Current income tax expense:
Federal	$	137,146	$	116,663	$	152,600
State	20,269		18,148		19,298
Total current income tax expense	157,415		134,811		171,898

Deferred income tax expense (benefit):
Federal	4,179		7,632		(17,973)
State	1,046		648		(1,810)
Total deferred income tax expense (benefit)	5,225		8,280		(19,783)
Total income tax expense	$	162,640	$	143,091	$	152,115

The reconciliations of income attributable to continuing operations, at the U.S. federal statutory tax rate, to income tax expense are as follows (dollars in thousands):


	Year Ended December 31,
	2025				2024				2023
Federal statutory tax	$	155,530	21.0	%	$	139,996	21.0	%	$	143,482	21.0	%
State income taxes, net of federal benefit1	16,742		2.3	%	15,055		2.3	%	13,330		2.0	%
Tax credits, net of proportional amortization:
Low-income housing tax credits, net	(6,772)		(0.9)	%	(7,371)		(1.1)	%	(1,805)		(0.3)	%
Other tax credits, net	(2,523)		(0.3)	%	(1,486)		(0.2)	%	(868)		(0.1)	%





Nontaxable or nondeductible items:
Tax exempt revenue	(7,073)		(1.0)	%	(6,341)		(1.0)	%	(5,786)		(0.8)	%
Other adjustments	6,773		0.9	%	3,857		0.6	%	4,444		0.7	%
Changes in unrecognized tax benefit	(917)		(0.1)	%	(1,433)		(0.2)	%	(905)		(0.1)	%
Other, net	880		0.1	%	814		0.1	%	223		(0.1)	%
Total income tax expense and effective tax rate	$	162,640	22.0	%	$	143,091	21.5	%	$	152,115	22.3	%

1 State taxes in OK, CO, and AZ, and OK, CO, and NYC, and OK and CO make up more than 50 percent of the tax effect in this category for tax years 2025, 2024, and 2023, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2025		2024		2023
Balance as of January 1	$	16,499	$	17,957	$	19,583
Additions for tax for current year positions	3,548		3,397		3,239

Lapses of applicable statute of limitations	(4,311)		(4,855)		(4,865)
Balance as of December 31	$	15,736	$	16,499	$	17,957

Of the above unrecognized tax benefits, $12.4 million, if recognized, would have affected the effective tax rate.

BOK Financial recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company recognized $1.6 million for 2025, $1.6 million for 2024, and $1.6 million for 2023 in interest and penalties. The Company had approximately $4.7 million and $5.0 million accrued for the payment of interest and penalties at December 31, 2025 and 2024, respectively. Federal statutes remain open for federal tax returns filed in the previous three reporting periods. Various state income tax statutes remain open for the previous three to six reporting periods.

Historical Timeline

Fiscal Year	Filed
2025	Feb 18, 2026	Showing above
2021	Feb 23, 2022

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

BOK FINANCIAL CORP Income Taxes Disclosure

Historical Timeline

About Income Taxes Disclosures

Other Available Disclosures