Federal and State Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Federal and State Income Taxes [Text Block]

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,
	2024		2023
Deferred tax assets:
Available for sale securities mark to market	$	154,277	$	183,723
Credit loss reserves	78,016		76,361
Lease liability	58,399		61,204
Compensation and employee benefits	51,545		47,418
Unearned fees	13,268		12,682
Other	25,918		29,193
Total deferred tax assets	381,423		410,581
Deferred tax liabilities:
Right-of-use asset	49,249		51,943
Mortgage servicing rights	35,464		32,723
Goodwill and intangibles	20,619		21,678
Depreciation	5,878		4,578
Lease financing	9,342		12,148
Other	29,002		17,915
Total deferred tax liabilities	149,554		140,985
Net deferred tax assets	$	231,869	$	269,596

No valuation allowance was necessary on deferred tax assets as of December 31, 2024 and 2023.

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

	Year Ended December 31,
	2024		2023		2022
Current income tax expense:
Federal	$	116,663	$	152,600	$	127,144
State	18,148		19,298		18,185
Total current income tax expense	134,811		171,898		145,329
Deferred income tax expense (benefit):
Federal	7,632		(17,973)		(4,700)
State	648		(1,810)		(765)
Total deferred income tax expense (benefit)	8,280		(19,783)		(5,465)
Total income tax expense	$	143,091	$	152,115	$	139,864

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

	Year Ended December 31,
	2024		2023		2022
Amount:
Federal statutory tax	$	139,996	$	143,482	$	138,633
Tax exempt revenue	(6,341)		(5,786)		(5,714)
State income taxes, net of federal benefit	15,055		13,330		13,490
Tax credits, net of proportional amortization	(8,857)		(2,673)		(8,883)
Other, net	3,238		3,762		2,338
Total income tax expense	$	143,091	$	152,115	$	139,864

	Year Ended December 31,
	2024		2023		2022
Percent of pretax income:
Federal statutory tax	21.0	%	21.0	%	21.0	%
Tax exempt revenue	(1.0)		(0.8)		(0.8)
State income taxes, net of federal benefit	2.3		2.0		2.0
Tax credits, net of proportional amortization	(1.3)		(0.4)		(1.4)
Other, net	0.5		0.5		0.4
Total	21.5	%	22.3	%	21.2	%

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

	2024		2023		2022
Balance as of January 1	$	17,957	$	19,583	$	21,092
Additions for tax for current year positions	3,397		3,239		3,465
Lapses of applicable statute of limitations	(4,855)		(4,865)		(4,974)
Balance as of December 31	$	16,499	$	17,957	$	19,583

Of the above unrecognized tax benefits, $13.0 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 2024, $1.6 million for 2023 and $1.8 million for 2022 in interest and penalties. The Company had approximately $5.0 million and $5.7 million accrued for the payment of interest and penalties at December 31, 2024 and 2023, 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.