BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT

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8-K - 8-K - BOK FINANCIAL CORP	bokf-20131231x8xk.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli Andrea Myers

Investor Relations Corporate Communications

(918) 595-3027 (918) 594-7794

BOK Financial Reports Annual Earnings of $317 Million for 2013

Fourth Quarter Earnings Total $73 Million

TULSA, Okla. (Wednesday, January 29, 2014) - BOK Financial Corporation reported net income of $316.6 million or $4.59 per diluted share for the year ended December 31, 2013. Net income for the year ended December 31, 2012 was $351.2 million or $5.13 per diluted share.

Net income for fourth quarter of 2013 totaled $73.0 million or $1.06 per diluted share compared to net income of $75.7 million or $1.10 per diluted share for the third quarter of 2013.

Steven Bradshaw, President and Chief Executive Officer, stated, “Many of the factors that impacted earnings throughout 2013 persisted into the fourth quarter, including slower mortgage volumes and increased expenses to meet regulatory initiatives. However, loan growth accelerated nicely in the fourth quarter, led by commercial real estate and healthcare lending, and our capital strength and the credit quality of our loan portfolio remain at industry-leading levels.”

Bradshaw continued, “All told, 2013 was a challenging year. While we remained solidly profitable, it was the first year since 2008 that we were unable to grow earnings. Consistent earnings growth is the key to building long term shareholder value, and we don’t make excuses. Accordingly, our newly-constituted executive leadership team is executing on a plan to accelerate revenue growth, enhance our customer experience, and control internal expense growth while meeting heightened regulatory expectations and providing a great place to work for employees. These five key objectives will set the foundation for long-term growth in earnings and shareholder value.”

Highlights of fourth quarter of 2013 included:


•	Net interest revenue totaled $166.2 million for the fourth quarter of 2013 compared to $167.9 million for the third quarter of 2013. Net interest margin was 2.74% for the fourth quarter of 2013, and 2.75% for the third quarter of 2013.


•	Fees and commissions revenue totaled $142.4 million for the fourth quarter of 2013 compared to $145.2 million for the third quarter of 2013.


•	Operating expenses were $215.4 million for the fourth quarter, up $5.1 million over the previous quarter. Personnel expense was largely unchanged compared to the previous quarter. Non-personnel expense increased $5.3 million.


•	An $11.4 million negative provision for credit losses was recorded in the fourth quarter of 2013 compared to an $8.5 million negative provision for credit losses in the third quarter. BOK Financial had a net recovery of $3.0 million for the fourth quarter of 2013 compared to net charge-offs of $299 thousand in the third quarter.

•

The combined allowance for credit losses totaled $187 million or 1.47% of outstanding loans at December 31, 2013 compared to $196 million or 1.59% of outstanding loans at September 30, 2013. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $155 million or 1.23% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2013 and $183 million or 1.49% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2013.

•

Average loans increased $59 million over the previous quarter due primarily to growth in commercial loans. Average commercial loans were up $135 million. Average commercial real estate loans were unchanged. Residential mortgage and consumer loans decreased by a total of $69 million. Period-end outstanding loan balances were $12.8 billion at December 31, 2013, an increase of $442 million over September 30, 2013. Commercial loan balances increased $372 million and commercial real estate loans were up $66 million over the prior quarter. Growth in residential mortgage loans was largely offset by a decrease in consumer loans.

•

Average deposits increased $428 million over the previous quarter. Growth in demand deposits and interest-bearing transaction accounts was partially offset by a decrease in time deposit balances. Period end deposits grew by $778 million over September 30, 2013 to $20.3 billion at December 31, 2013. Interest-bearing transaction accounts increased $814 million. Demand deposit account balances were largely unchanged and time deposits decreased $24 million.

•

Tangible common equity ratio was 9.90% at December 31, 2013 and 9.73% at September 30, 2013. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders' equity minus intangible assets and equity that does not benefit common shareholders. The Company and its subsidiary bank continue to exceed the regulatory definition of well capitalized. The Company's Tier 1 capital ratios, as defined by banking regulations, were 13.73% at December 31, 2013 and 13.51% at September 30, 2013.


•	The Company paid a regular quarterly cash dividend of $28 million or $0.40 per common share during the fourth quarter of 2013. On January 28, 2014, the board of directors approved a quarterly cash dividend of $0.40 per common share payable on or about February 28, 2014 to shareholders of record as of February 14, 2014.

Net Interest Revenue

Net interest revenue decreased $1.6 million compared to the third quarter of 2013. Net interest margin was 2.74% for the fourth quarter of 2013, compared to 2.75% for the third quarter of 2013.

The yield on average earning assets was 3.02%, a decrease of 1 basis point compared to the prior quarter. The yield on the available for sale securities portfolio decreased 4 basis points to 1.89% primarily due to cash flows being reinvested at lower current market rates. Cash flows received from payments on residential mortgage-backed securities are currently being reinvested in short-duration securities that yield nearly 1.75%. The loan portfolio yield decreased 5 basis points from the previous quarter to 4.01% primarily due to continued market pricing pressure. Funding costs were unchanged compared to the prior quarter at 0.42%.

Average earning assets decreased $140 million during the fourth quarter of 2013 primarily due to a $124 million decrease in the available for sale securities portfolio and a $95 million decrease in interest-bearing cash and cash equivalents. Average loan balances were up $59 million over the previous quarter. Average deposits increased $428 million and the average balance of borrowed funds decreased $699 million compared to the third quarter of 2013.

Steven Nell, Chief Financial Officer commented, "In the fourth quarter, we began to proactively shrink the size of our bond portfolio to better position the balance sheet for a longer-term rising rate environment. Our outlook for earning assets is for continued declines in the securities portfolio to be partially offset by loan growth. The resulting shift in earnings asset mix will be supportive of the net interest margin."

Fees and Commissions Revenue

Fees and commissions revenue totaled $142.4 million for the fourth quarter of 2013, a decrease of $2.9 million compared to the third quarter of 2013.

Brokerage and trading revenue decreased $3.8 million compared to the prior quarter primarily due to a decrease in securities trading revenue and investment banking revenue, partially offset by an increase in customer hedging revenue.

Mortgage banking revenue totaled $21.9 million for the fourth quarter of 2013 compared to $23.5 million for the third quarter of 2013. Residential mortgage loans funded for sale totaled $849 million, a decrease of $231 million compared to the previous quarter. Outstanding commitments to originate mortgage loans also decreased to $259 million at December 31 from $351 million at September 30. Approximately 39% of loans originated in the fourth quarter were through correspondent channels, unchanged from the previous quarter. Refinanced mortgage loans represented 29% of loans originated for sale in the fourth quarter of 2013 compared to 30% in the third quarter of 2013.

Trust fees and commissions grew by $1.2 million over the third quarter of 2013 primarily due to the increase in the fair value of assets managed and seasonal increase in tax fees. Other revenue was up $3.7 million over the prior quarter primarily due to the favorable resolution of a lawsuit. Deposit service charges and fees decreased $1.3 million and transaction card revenue decreased $921 thousand.

On December 10, 2013, federal banking agencies issued final rules implementing Section 619 of the Dodd-Frank Wall Street Reform and Consumer Act, commonly referred to as the Volcker Rule. Section 619 is effective April 1, 2014. During the fourth quarter, BOK Financial recognized a $1.4 million impairment charge as the Company may be required to divest a portion of its ownership interests in private equity funds by July 21, 2015.

Operating Expenses

Total operating expenses were $215.4 million for the fourth quarter of 2013, up $5.1 million over the third quarter of 2013. Personnel costs were largely unchanged compared to the third quarter of 2013. Non-personnel expense increased $5.3 million over the third quarter of 2013. Professional fees and services expense increased $2.8 million, data processing and communications expense increased $2.5 million and net occupancy expense increased $1.8 million over the third quarter. Operating expenses for the third quarter included a $2.1 million discretionary contribution of appreciated stock to the BOKF Foundation. This contribution also resulted in a $1.1 million reduction in income tax expense.

Loans, Deposits and Capital

Loans

Outstanding loans were $12.8 billion at December 31, 2013, an increase of $442 million over the previous quarter. Commercial, commercial real estate and residential mortgage loan balances all grew over the prior quarter, partially offset by a decrease in consumer loan balances.

Outstanding commercial loan balances increased $372 million over September 30, 2013. All sectors of our commercial loan portfolio grew over the prior quarter. Service sector loans balances grew by $134 million and healthcare sector loans were up $114 million. Other commercial and industrial loans increased $47 million, energy loan balances increased $40 million and wholesale/retail sector loans grew $20 million over September 30, 2013. Unfunded energy loan commitments decreased by $105 million in the fourth quarter to $2.5 billion. All other unfunded commercial loan commitments totaled $3.6 billion at December 31, 2013, up $49 million over September 30, 2013.

Commercial real estate loans grew by $66 million over September 30, 2013. Loans secured by multifamily residential properties were up $56 million and retail sector loans by $29 million over the prior quarter. Loans secured by office buildings decreased $11 million and construction and land development loan balances decreased $10 million. Unfunded commercial real estate loan commitments totaled $534 million at December 31, 2013, a decrease of $13 million from September 30, 2013.

Residential mortgage loans increased $17 million over September 30, 2013, due primarily to growth in permanent mortgage balances guaranteed by U.S. government agencies. Growth in first lien, fully amortizing home equity loans, was partially offset by a decrease in non-guaranteed permanent mortgage loan balances. Consumer loans decreased $13 million compared to the prior quarter primarily due to a decrease in other consumer loans and continued runoff of the indirect automobile loan portfolio.

"As we moved through the fourth quarter, we saw significant acceleration in key lending segments including commercial real estate and our healthcare lending business," added Dan Ellinor, Chief Operating Officer. "As a result, we posted double-digit annualized loan growth during the quarter and now enter 2014 with strong pipelines and a solid plan for building on our commercial lending success."

"The energy lending business was essentially flat in the fourth quarter, as paydowns due to long term refinancing and asset sales continue to offset new deals," Ellinor continued. "Commercial and industrial lending, while stronger in the fourth quarter than in the third, was flat overall in 2013 as business owners waited for more consistent economic growth before making long-term investments that require additional financing. Net/net, we believe we can deliver loan growth in 2014 in the mid to high single digits."

Deposits

Deposits totaled $20.3 billion at December 31, 2013, an increase of $778 million over September 30, 2013 primarily due to normal seasonality and temporary customer activity. During the first half of January 2014, deposits decreased approximately $300 million. Demand deposit balances were largely unchanged compared to the prior quarter. Interest-bearing transaction account balances grew by $814 million and time deposits decreased $24 million. Among the lines of business, commercial deposits increased $270 million, consumer deposits decreased $23 million and wealth management deposits increased $537 million. Growth in commercial deposit balances was primarily due to growth in balances attributed to treasury service customers. Growth in commercial and industrial, small business and healthcare customer balances were partially offset by a decrease in balances attributed to energy and commercial real estate customers during the fourth quarter.

Capital

The Company and its subsidiary bank exceeded the regulatory definition of well capitalized at December 31, 2013. The Company's Tier 1 capital ratio was 13.73% at December 31, 2013 and 13.51% at September 30, 2013. The total capital ratio was 15.52% at December 31, 2013 and 15.35% at September 30, 2013. In addition, the Company's tangible common equity ratio, a non-GAAP measure, was 9.90% at December 31, 2013 and 9.73% at September 30, 2013.

In July 2013, banking regulators issued the final rule revising regulatory capital rules for substantially all U.S. banking organizations. The new capital rule will be effective for BOK Financial on January 1, 2015. The new capital rule establishes a 7% threshold for the Tier 1 common equity ratio consisting of a minimum level plus a capital conservation buffer. The Company expects to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital, consistent with the treatment under current capital rules. BOK Financial's Tier 1 common equity ratio based on the existing Basel I standards was 13.55% as of December 31, 2013. Based on our interpretation of the new capital rule, our estimated Tier 1 common equity ratio would be approximately 12.60%, nearly 560 basis points above the 7% regulatory threshold.

Credit Quality

Nonperforming assets totaled $248 million or 1.92% of outstanding loans and repossessed assets at December 31, 2013 compared to $271 million or 2.18% of outstanding loans and repossessed assets at September 30, 2013. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $155 million or 1.23% of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2013 and $183 million or 1.49% at September 30, 2013, a decrease of $27 million or 15%.

Nonaccruing loans totaled $101 million or 0.79% of outstanding loans at December 31, 2013 compared to $113 million or 0.91% of outstanding loans at September 30, 2013. New nonaccruing loans identified in the fourth quarter totaled $21 million, offset by $16 million in payments received, $14 million in foreclosures and repossessions and $3.1 million in charge-offs.

Nonaccruing commercial loans were $17 million or 0.21% of outstanding commercial loans at December 31, 2013 compared to $20 million or 0.26% of outstanding commercial loans at September 30, 2013.

Nonaccruing commercial real estate loans decreased to $41 million or 1.69% of outstanding commercial real estate loans at December 31, 2013 from $53 million or 2.23% of outstanding commercial real estate loans at September 30, 2013. Nonaccruing commercial real estate loans consist primarily of land development and residential construction loans. Nonaccruing land development and residential construction loans totaled $17 million at December 31, 2013, a decrease of $3.4 million during the fourth quarter.

Nonaccruing residential mortgage loans totaled $42 million or 2.06% of outstanding residential mortgage loans, an increase of $3.1 million over September 30, 2013. Principally all non-guaranteed residential mortgage loans past due 90 days or more are nonaccruing. Residential mortgage loans past due 30 to 89 days and still accruing interest, excluding loans guaranteed by U.S. government agencies, totaled $13 million at December 31, 2013 and $8.6 million at September 30, 2013.

After evaluating all credit factors, the Company determined that an $11.4 million negative provision for credit losses was necessary during the fourth quarter of 2013. A major employer in the Tulsa, Ft. Worth and Kansas City markets exited bankruptcy during the fourth quarter. The Company had previously established a non-specific allowance related to the secondary exposure to the employer's bankruptcy by employees, retirees, vendors, suppliers and other business partners. In addition, all credit metrics improved during the quarter and gross loss rates continued to decline. The combined allowance for credit losses totaled $187 million or 1.47% of outstanding loans and 185.35% of nonaccruing loans at December 31, 2013. The allowance for loan losses was $185 million and the accrual for off-balance sheet credit losses was $2.1 million. Gross charge-offs totaled $3.1 million for the fourth quarter, compared to $4.7 million for the previous quarter. Recoveries totaled $6.1 million for the fourth quarter of 2013. BOK Financial had a net recovery of $3.0 million for the fourth quarter of 2013 compared with net charge-offs of $299 thousand or 0.01% of average loans on an annualized basis for the third quarter of 2013.

Real estate and other repossessed assets totaled $92 million at December 31, 2013, primarily consisting of $53 million of 1-4 family residential properties (including $37 million guaranteed by U.S. government agencies), $18 million of developed commercial real estate properties, $14 million of undeveloped land and $7.0 million of residential land and land development properties. The distribution of real estate owned and other repossessed assets among various markets included $19 million attributed to Oklahoma, $17 million attributed to Arizona and $27.8 million attributed to New Mexico. Real estate and other repossessed assets decreased $16 million during the fourth quarter of 2013. Additions of $14 million were offset by $29 million of sales. Additions included $12 million and sales included $12 million of 1-4 family residential properties guaranteed by U.S. government agencies. Net gains on sales and write-downs of real estate and other repossessed assets totaled $211 thousand in the fourth quarter of 2013 compared to $438 thousand in the third quarter.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $10.1 billion at December 31, 2013 and $10.4 billion at September 30, 2013. At December 31, 2013, the available for sale portfolio consisted primarily of $7.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $2.1 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

At December 31, 2013 the available for sale securities portfolio had a net unrealized loss of $38 million compared to a net unrealized gain of $7.4 million at September 30, 2013. Substantially all of the change in net unrealized losses and gains resulted from rising interest rates. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2013 decreased $42 million during the fourth quarter to a net unrealized loss of $4.2 million at December 31, 2013. Commercial mortgage-backed securities had a net unrealized loss of $44 million at December 31, 2013, compared to a net unrealized loss of $40 million at September 30, 2013.

In the fourth quarter of 2013, the Company recognized net gains of $1.6 million from sales of $270 million of available for sale securities. Securities were sold either because they had reached their expected maximum potential return or sold to reinvest those proceeds into shorter average life securities. Net gains from sales of $356 million of available for sale securities in the third quarter of 2013 totaled $478 thousand.

The Company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts designated as an economic hedge of the changes in the fair value of our mortgage servicing rights. Due to fluctuations in residential mortgage interest rates during the fourth quarter of 2013, the value of our mortgage servicing rights increased by $6.1 million. The value of securities and interest rate derivative contracts held as an economic hedge decreased by $3.9 million.

About BOK Financial Corporation

BOK Financial is a $27 billion regional financial services company based in Tulsa, Oklahoma. The Company's stock is publicly traded on NASDAQ under the Global Select market listings (symbol: BOKF). BOK Financial's holdings include BOKF, NA, BOSC, Inc., The Milestone Group, Inc. and Cavanal Hill Investment Management, Inc. BOKF, NA operates the TransFund electronic funds network and seven banking divisions: Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust. Through its subsidiaries, the Company provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The Company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of December 31, 2013 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition by traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)

	December 31, 2013			September 30, 2013			December 31, 2012
ASSETS
Cash and due from banks	$	512,931		$	625,671		$	710,739
Interest-bearing cash and cash equivalents	574,282			535,313			575,500
Trading securities	91,616			150,887			214,102
Investment securities	677,878			644,225			499,534
Available for sale securities	10,147,162			10,372,903			11,287,221
Fair value option securities	167,125			167,860			284,296
Restricted equity securities	85,240			125,540			64,807
Residential mortgage loans held for sale	200,546			230,511			293,762
Loans:
Commercial	7,943,221			7,571,075			7,641,912
Commercial real estate	2,415,353			2,349,229			2,228,999
Residential mortgage	2,052,026			2,034,765			2,045,040
Consumer	381,664			395,031			395,505
Total loans	12,792,264			12,350,100			12,311,456
Allowance for loan losses	(185,396		)	(194,325		)	(215,507		)
Loans, net of allowance	12,606,868			12,155,775			12,095,949
Premises and equipment, net	277,849			275,347			265,920
Receivables	117,126			108,435			114,185
Goodwill	359,759			359,759			361,979
Intangible assets, net	24,564			25,407			28,192
Mortgage servicing rights, net	153,333			140,863			100,812
Real estate and other repossessed assets, net	92,272			108,122			103,791
Derivative contracts, net	265,012			377,325			338,106
Cash surrender value of bank-owned life insurance	284,801			282,490			274,531
Receivable on unsettled securities sales	17,174			93,020			211,052
Other assets	359,894			386,914			324,153
TOTAL ASSETS	$	27,015,432		$	27,166,367		$	28,148,631

LIABILITIES AND EQUITY
Deposits:
Demand	$	7,316,277		$	7,331,976		$	8,038,286
Interest-bearing transaction	9,934,051			9,119,810			9,888,038
Savings	323,006			319,849			284,744
Time	2,695,993			2,720,020			2,967,992
Total deposits	20,269,327			19,491,655			21,179,060
Funds purchased	868,081			992,345			1,167,416
Repurchase agreements	813,454			782,418			887,030
Other borrowings	1,040,353			1,837,181			651,775
Subordinated debentures	347,802			347,758			347,633
Accrued interest, taxes, and expense	194,870			182,076			176,678
Due on unsettled securities purchases	45,740			114,259			297,453
Derivative contracts, net	247,185			232,544			283,589
Other liabilities	133,647			159,157			164,316
TOTAL LIABILITIES	23,960,459			24,139,393			25,154,950
Shareholders' equity:
Capital, surplus and retained earnings	3,045,672			2,993,870			2,807,940
Accumulated other comprehensive income (loss)	(25,623		)	(2,626		)	149,920
TOTAL SHAREHOLDERS' EQUITY	3,020,049			2,991,244			2,957,860
Non-controlling interest	34,924			35,730			35,821
TOTAL EQUITY	3,054,973			3,026,974			2,993,681
TOTAL LIABILITIES AND EQUITY	$	27,015,432		$	27,166,367		$	28,148,631

AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012
ASSETS
Interest-bearing cash and cash equivalents	$	559,918		$	654,591		$	408,224		$	388,132		$	413,920
Trading securities	127,011			124,689			181,866			162,353			165,109
Investment securities	672,722			621,104			610,940			534,772			474,085
Available for sale securities	10,434,810			10,558,677			11,060,700			11,292,181			11,482,212
Fair value option securities	167,490			169,299			216,312			251,725			292,490
Restricted equity securities	123,009			155,938			144,332			80,433			65,275
Residential mortgage loans held for sale	217,811			225,789			261,977			216,816			272,581
Loans:
Commercial	7,737,884			7,602,951			7,606,918			7,498,905			7,441,957
Commercial real estate	2,352,915			2,359,120			2,286,674			2,309,988			2,170,676
Residential mortgage	1,998,980			2,043,332			2,013,004			2,034,315			1,991,530
Consumer	371,798			396,694			370,847			381,752			385,156
Total loans	12,461,576			12,402,096			12,277,444			12,224,960			11,989,319
Allowance for loan losses	(193,309		)	(201,616		)	(206,807		)	(214,017		)	(229,095		)
Total loans, net	12,268,267			12,200,480			12,070,637			12,010,943			11,760,224
Total earning assets	24,571,038			24,710,567			24,954,988			24,937,355			24,925,896
Cash and due from banks	324,349			386,331			546,558			465,412			455,247
Derivative contracts, net	314,530			377,664			401,485			286,772			316,579
Cash surrender value of bank-owned life insurance	283,289			280,909			278,501			275,705			272,778
Receivable on unsettled securities sales	83,016			90,014			135,964			178,561			144,077
Other assets	1,526,566			1,409,247			1,341,828			1,369,626			1,382,199
TOTAL ASSETS	$	27,102,788		$	27,254,732		$	27,659,324		$	27,513,431		$	27,496,776

LIABILITIES AND EQUITY
Deposits:
Demand	$	7,356,063		$	7,110,079		$	6,888,983		$	7,002,046		$	7,505,074
Interest-bearing transaction	9,486,136			9,276,136			9,504,128			9,836,204			9,343,421
Savings	323,123			317,912			315,421			296,319			278,714
Time	2,710,019			2,742,970			2,818,533			2,913,999			3,010,367
Total deposits	19,875,341			19,447,097			19,527,065			20,048,568			20,137,576
Funds purchased	748,074			776,356			789,302			1,155,983			1,295,442
Repurchase agreements	752,286			799,175			819,373			878,679			900,131
Other borrowings	1,551,591			2,175,747			2,172,417			863,360			364,425
Subordinated debentures	347,781			347,737			347,695			347,654			347,613
Derivative contracts, net	294,315			330,819			334,877			220,037			246,296
Due on unsettled securities purchases	152,078			111,998			330,926			665,175			854,474
Other liabilities	327,519			300,880			310,015			336,136			379,332
TOTAL LIABILITIES	24,048,985			24,289,809			24,631,670			24,515,592			24,525,289
Total equity	3,053,803			2,964,923			3,027,654			2,997,839			2,971,487
TOTAL LIABILITIES AND EQUITY	$	27,102,788		$	27,254,732		$	27,659,324		$	27,513,431		$	27,496,776

STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2013			2012			2013			2012

Interest revenue	$	183,120		$	195,206		$	745,371		$	794,871
Interest expense	16,876			20,945			70,894			87,322
Net interest revenue	166,244			174,261			674,477			707,549
Provision for credit losses	(11,400		)	(14,000		)	(27,900		)	(22,000		)
Net interest revenue after provision for credit losses	177,644			188,261			702,377			729,549
Other operating revenue:
Brokerage and trading revenue	28,515			31,958			125,478			126,930
Transaction card revenue	29,134			28,009			116,823			107,985
Trust fees and commissions	25,074			22,030			96,082			80,053
Deposit service charges and fees	23,440			24,174			95,110			98,917
Mortgage banking revenue	21,876			46,410			121,934			169,302
Bank-owned life insurance	2,285			2,673			10,155			11,089
Other revenue	12,048			9,661			38,262			34,604
Total fees and commissions	142,372			164,915			603,844			628,880
Gain (loss) on other assets, net	651			137			(925		)	(1,415		)
Loss on derivatives, net	(930		)	(637		)	(4,367		)	(301		)
Gain (loss) on fair value option securities, net	(2,805		)	(2,081		)	(15,212		)	9,230
Change in fair value of mortgage servicing rights	6,093			4,689			22,720			(9,210		)
Gain on available for sale securities, net	1,634			1,066			10,720			33,845
Total other-than-temporary impairment losses	—			(504		)	(2,574		)	(1,144		)
Portion of loss recognized in (reclassified from) other comprehensive income	—			(1,163		)	266			(6,207		)
Net impairment losses recognized in earnings	—			(1,667		)	(2,308		)	(7,351		)
Total other operating revenue	147,015			166,422			614,472			653,678
Other operating expense:
Personnel	125,662			131,192			505,225			491,033
Business promotion	6,020			6,150			22,598			23,338
Contribution to BOKF Foundation	—			2,062			2,062			2,062
Professional fees and services	10,003			10,082			32,552			34,015
Net occupancy and equipment	19,103			16,883			69,773			66,726
Insurance	4,394			3,789			16,122			15,356
Data processing and communications	28,196			25,010			106,075			98,904
Printing, postage and supplies	3,126			3,403			13,885			14,228
Net losses and operating expenses of repossessed assets	1,618			6,665			5,160			20,528
Amortization of intangible assets	842			1,065			3,428			2,927
Mortgage banking costs	7,071			10,542			31,088			44,334
Other expense	9,384			9,931			32,652			26,912
Total other operating expense	215,419			226,774			840,620			840,363

Net income before taxes	109,240			127,909			476,229			542,864
Federal and state income taxes	35,318			44,293			157,298			188,740

Net income	73,922			83,616			318,931			354,124
Net income attributable to non-controlling interest	946			1,051			2,322			2,933
Net income attributable to BOK Financial Corporation shareholders	$	72,976		$	82,565		$	316,609		$	351,191

Average shares outstanding:
Basic	68,095,254			67,622,777			67,988,897			67,684,043
Diluted	68,293,758			67,914,717			68,205,519			67,964,940

Net income per share:
Basic	$	1.06		$	1.21		$	4.61		$	5.15
Diluted	$	1.06		$	1.21		$	4.59		$	5.13

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012
Capital:
Period-end shareholders' equity	$	3,020,049		$	2,991,244		$	2,957,637		$	3,011,958		$	2,957,860
Risk weighted assets	$	19,437,711		$	19,366,620		$	19,157,978		$	18,756,648		$	19,016,673
Risk-based capital ratios:
Tier 1	13.73		%	13.51		%	13.37		%	13.35		%	12.78		%
Total capital	15.52		%	15.35		%	15.28		%	15.68		%	15.13		%
Leverage ratio	10.05		%	9.80		%	9.43		%	9.28		%	9.01		%
Tangible common equity ratio¹	9.90		%	9.73		%	9.38		%	9.70		%	9.25		%
Tier 1 common equity ratio²	13.55		%	13.33		%	13.19		%	13.16		%	12.59		%

Common stock:
Book value per share	$	43.88		$	43.49		$	43.03		$	43.85		$	43.29
Market value per share:
High	$	66.32		$	69.36		$	65.95		$	62.77		$	59.77
Low	$	60.81		$	62.93		$	60.52		$	55.05		$	54.19
Cash dividends paid	$	27,523		$	26,135		$	26,118		$	26,067		$	94,231
Dividend payout ratio	37.72		%	34.51		%	32.68		%	29.63		%	114.13		%
Shares outstanding, net	68,829,450			68,787,584			68,739,208			68,687,718			68,327,351
Stock buy-back program:
Shares repurchased	—			—			—			—			—
Amount	$	—		$	—		$	—		$	—		$	—
Average price per share	$	—		$	—		$	—		$	—		$	—

Performance ratios (quarter annualized):
Return on average assets	1.07		%	1.10		%	1.16		%	1.30		%	1.19		%
Return on average equity	9.48		%	10.13		%	10.59		%	11.90		%	11.05		%
Net interest margin	2.74		%	2.75		%	2.80		%	2.90		%	2.95		%
Efficiency ratio	66.57		%	66.14		%	58.82		%	60.25		%	64.63		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	3,020,049		$	2,991,244		$	2,957,637		$	3,011,958		$	2,957,860
Less: Goodwill and intangible assets, net	(384,323		)	(385,166		)	(386,001		)	(386,876		)	(390,171		)
Tangible common equity	$	2,635,726		$	2,606,078		$	2,571,636		$	2,625,082		$	2,567,689

Total assets	$	27,015,432		$	27,166,367		$	27,808,200		$	27,447,158		$	28,148,631
Less: Goodwill and intangible assets, net	(384,323		)	(385,166		)	(386,001		)	(386,876		)	(390,171		)
Tangible assets	$	26,631,109		$	26,781,201		$	27,422,199		$	27,060,282		$	27,758,460

Tangible common equity ratio	9.90		%	9.73		%	9.38		%	9.70		%	9.25		%

² Tier 1 common equity ratio:
Tier 1 capital	$	2,668,981		$	2,616,610		$	2,561,399		$	2,503,892		$	2,430,671
Less: Non-controlling interest	(34,924		)	(35,730		)	(35,245		)	(35,934		)	(35,821		)
Tier 1 common equity	$	2,634,057		$	2,580,880		$	2,526,154		$	2,467,958		$	2,394,850

Risk weighted assets	$	19,437,711		$	19,366,620		$	19,157,978		$	18,756,648		$	19,016,673

Tier 1 common equity ratio	13.55		%	13.33		%	13.19		%	13.16		%	12.59		%

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012
Other data:
Fiduciary assets	$	30,137,092		$	29,593,140		$	28,280,214		$	27,606,180		$	25,829,038
Mortgage servicing portfolio	$	13,718,942		$	13,298,479		$	12,741,651		$	12,272,691		$	11,981,624
Mortgage commitments	$	258,873		$	351,196		$	547,508		$	466,571		$	356,634
Mortgage loans funded for sale	$	848,870		$	1,080,167		$	1,196,038		$	956,315		$	1,073,541
Mortgage loan refinances to total fundings	29		%	30		%	48		%	62		%	62		%
Tax equivalent adjustment	$	2,467		$	2,565		$	2,647		$	2,619		$	2,472
Net unrealized gain (loss) on available for sale securities	$	(37,929	)	$	7,425		$	42,233		$	228,620		$	254,587

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(931	)	$	31		$	(2,526	)	$	(1,654	)	$	(707	)
Loss on fair value option securities, net	(3,013		)	(89		)	(9,102		)	(3,232		)	(2,177		)
Loss on economic hedge of mortgage servicing rights	(3,944		)	(58		)	(11,628		)	(4,886		)	(2,884		)
Gain (loss) on changes in fair value of mortgage servicing rights	6,093			(346		)	14,315			2,658			4,689
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	2,149		$	(404	)	$	2,687		$	(2,228	)	$	1,805

Net interest revenue on fair value option securities	$	811		$	741		$	910		$	828		$	748

QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012

Interest revenue	$	183,120		$	185,428		$	186,777		$	190,046		$	195,206
Interest expense	16,876			17,539			17,885			18,594			20,945
Net interest revenue	166,244			167,889			168,892			171,452			174,261
Provision for credit losses	(11,400		)	(8,500		)	—			(8,000		)	(14,000		)
Net interest revenue after provision for credit losses	177,644			176,389			168,892			179,452			188,261
Other operating revenue:
Brokerage and trading revenue	28,515			32,338			32,874			31,751			31,958
Transaction card revenue	29,134			30,055			29,942			27,692			28,009
Trust fees and commissions	25,074			23,892			24,803			22,313			22,030
Deposit service charges and fees	23,440			24,742			23,962			22,966			24,174
Mortgage banking revenue	21,876			23,486			36,596			39,976			46,410
Bank-owned life insurance	2,285			2,408			2,236			3,226			2,673
Other revenue	12,048			8,314			8,760			9,140			9,661
Total fees and commissions	142,372			145,235			159,173			157,064			164,915
Gain (loss) on other assets, net	651			(377		)	(1,666		)	467			137
Gain (loss) on derivatives, net	(930		)	31			(2,527		)	(941		)	(637		)
Loss on fair value option securities, net	(2,805		)	(80		)	(9,156		)	(3,171		)	(2,081		)
Change in fair value of mortgage servicing rights	6,093			(346		)	14,315			2,658			4,689
Gain on available for sale securities, net	1,634			478			3,753			4,855			1,066
Total other-than-temporary impairment losses	—			(1,436		)	(1,138		)	—			(504		)
Portion of loss recognized in (reclassified from) other comprehensive income	—			(73		)	586			(247		)	(1,163		)
Net impairment losses recognized in earnings	—			(1,509		)	(552		)	(247		)	(1,667		)
Total other operating revenue	147,015			143,432			163,340			160,685			166,422
Other operating expense:
Personnel	125,662			125,799			128,110			125,654			131,192
Business promotion	6,020			5,355			5,770			5,453			6,150
Contribution to BOKF Foundation	—			2,062			—			—			2,062
Professional fees and services	10,003			7,183			8,381			6,985			10,082
Net occupancy and equipment	19,103			17,280			16,909			16,481			16,883
Insurance	4,394			3,939			4,044			3,745			3,789
Data processing and communications	28,196			25,695			26,734			25,450			25,010
Printing, postage and supplies	3,126			3,505			3,580			3,674			3,403
Net losses and operating expenses of repossessed assets	1,618			2,014			282			1,246			6,665
Amortization of intangible assets	842			835			875			876			1,065
Mortgage banking costs	7,071			8,753			7,910			7,354			10,542
Other expense	9,384			7,878			8,326			7,064			9,931
Total other operating expense	215,419			210,298			210,921			203,982			226,774
Net income before taxes	109,240			109,523			121,311			136,155			127,909
Federal and state income taxes	35,318			33,461			41,423			47,096			44,293
Net income	73,922			76,062			79,888			89,059			83,616
Net income (loss) attributable to non-controlling interest	946			324			(43		)	1,095			1,051
Net income attributable to BOK Financial Corporation shareholders	$	72,976		$	75,738		$	79,931		$	87,964		$	82,565

Average shares outstanding:
Basic	68,095,254			68,049,179			67,993,822			67,814,550			67,622,777
Diluted	68,293,758			68,272,861			68,212,497			68,040,180			67,914,717
Net income per share:
Basic	$	1.06		$	1.10		$	1.16		$	1.28		$	1.21
Diluted	$	1.06		$	1.10		$	1.16		$	1.28		$	1.21

LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)

	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012
Commercial:
Energy	$	2,351,760	$	2,311,991	$	2,384,746	$	2,349,432	$	2,460,659
Services	2,282,210		2,148,551		2,204,253		2,114,799		2,164,186
Wholesale/retail	1,201,364		1,181,806		1,175,543		1,085,000		1,106,439
Manufacturing	391,751		382,460		386,133		399,818		348,484
Healthcare	1,274,246		1,160,212		1,118,810		1,081,636		1,081,406
Integrated food services	150,494		141,440		163,551		173,800		191,106
Other commercial and industrial	291,396		244,615		275,084		213,820		289,632
Total commercial	7,943,221		7,571,075		7,708,120		7,418,305		7,641,912

Commercial real estate:
Construction and land development	206,258		216,456		225,654		237,829		253,093
Retail	586,047		556,918		553,412		584,279		522,786
Office	411,499		422,043		459,558		420,644		427,872
Multifamily	576,502		520,454		500,452		460,474		402,896
Industrial	243,877		245,022		253,990		237,049		245,994
Other real estate	391,170		388,336		324,030		344,885		376,358
Total commercial real estate	2,415,353		2,349,229		2,317,096		2,285,160		2,228,999

Residential mortgage:
Permanent mortgage	1,062,744		1,078,661		1,095,871		1,091,575		1,123,965
Permanent mortgages guaranteed by U.S. government agencies	181,598		163,919		156,887		162,419		160,444
Home equity	807,684		792,185		787,027		758,456		760,631
Total residential mortgage	2,052,026		2,034,765		2,039,785		2,012,450		2,045,040

Consumer:
Indirect automobile	6,513		10,757		16,555		24,368		34,735
Other consumer	375,151		384,274		359,226		353,281		360,770
Total consumer	381,664		395,031		375,781		377,649		395,505

Total	$	12,792,264	$	12,350,100	$	12,440,782	$	12,093,564	$	12,311,456

LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)

	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012

Bank of Oklahoma:
Commercial	$	2,902,140	$	2,801,979	$	2,993,247	$	2,853,608	$	3,089,686
Commercial real estate	602,010		564,141		569,780		568,500		580,694
Residential mortgage	1,524,212		1,497,027		1,503,457		1,468,434		1,488,486
Consumer	192,283		207,360		211,744		207,662		220,096
Total Bank of Oklahoma	5,220,645		5,070,507		5,278,228		5,098,204		5,378,962

Bank of Texas:
Commercial	3,052,274		2,858,970		2,849,888		2,718,050		2,726,925
Commercial real estate	816,574		853,857		813,659		800,577		771,796
Residential mortgage	260,544		263,945		263,916		272,406		275,408
Consumer	131,297		129,144		105,390		110,060		116,252
Total Bank of Texas	4,260,689		4,105,916		4,032,853		3,901,093		3,890,381

Bank of Albuquerque:
Commercial	342,336		325,542		296,036		271,075		265,830
Commercial real estate	308,829		306,914		314,871		332,928		326,135
Residential mortgage	133,900		131,756		133,058		129,727		130,337
Consumer	13,842		14,583		14,364		14,403		15,456
Total Bank of Albuquerque	798,907		778,795		758,329		748,133		737,758

Bank of Arkansas:
Commercial	81,556		73,063		61,414		54,191		62,049
Commercial real estate	78,264		84,364		85,546		88,264		90,821
Residential mortgage	7,922		10,466		10,691		11,285		13,046
Consumer	8,023		9,426		11,819		13,943		15,421
Total Bank of Arkansas	175,765		177,319		169,470		167,683		181,337

Colorado State Bank & Trust:
Commercial	735,626		748,331		786,262		822,942		776,610
Commercial real estate	190,355		158,320		146,137		171,251		173,327
Residential mortgage	62,821		66,475		62,490		56,052		59,363
Consumer	22,686		22,592		23,148		20,990		19,333
Total Colorado State Bank & Trust	1,011,488		995,718		1,018,037		1,071,235		1,028,633

Bank of Arizona:
Commercial	417,702		379,817		355,698		326,266		313,296
Commercial real estate	257,477		250,129		258,938		229,020		201,760
Residential mortgage	47,111		49,109		51,774		54,285		57,803
Consumer	7,887		7,059		4,947		5,664		4,686
Total Bank of Arizona	730,177		686,114		671,357		615,235		577,545

Bank of Kansas City:
Commercial	411,587		383,373		365,575		372,173		407,516
Commercial real estate	161,844		131,504		128,165		94,620		84,466
Residential mortgage	15,516		15,987		14,399		20,261		20,597
Consumer	5,646		4,867		4,369		4,927		4,261
Total Bank of Kansas City	594,593		535,731		512,508		491,981		516,840

TOTAL BOK FINANCIAL	$	12,792,264	$	12,350,100	$	12,440,782	$	12,093,564	$	12,311,456

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)

	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012
Bank of Oklahoma:
Demand	$	3,432,940	$	3,442,831	$	3,552,328	$	3,591,661	$	4,207,263
Interest-bearing:
Transaction	6,318,045		5,565,462		5,644,959		6,132,736		6,023,384
Savings	191,880		189,186		185,345		185,363		163,512
Time	1,214,507		1,197,617		1,179,869		1,264,365		1,267,854
Total interest-bearing	7,724,432		6,952,265		7,010,173		7,582,464		7,454,750
Total Bank of Oklahoma	11,157,372		10,395,096		10,562,501		11,174,125		11,662,013

Bank of Texas:
Demand	2,481,603		2,498,668		2,299,632		2,098,891		2,606,176
Interest-bearing:
Transaction	1,966,580		1,853,586		1,931,758		1,979,318		2,129,084
Savings	64,632		63,368		63,745		63,218		58,429
Time	638,465		667,873		692,888		717,974		762,233
Total interest-bearing	2,669,677		2,584,827		2,688,391		2,760,510		2,949,746
Total Bank of Texas	5,151,280		5,083,495		4,988,023		4,859,401		5,555,922

Bank of Albuquerque:
Demand	502,395		491,894		455,580		446,841		427,510
Interest-bearing:
Transaction	529,140		541,565		525,481		513,774		511,758
Savings	33,944		34,003		34,096		35,560		31,926
Time	327,281		334,946		346,506		354,303		364,928
Total interest-bearing	890,365		910,514		906,083		903,637		908,612
Total Bank of Albuquerque	1,392,760		1,402,408		1,361,663		1,350,478		1,336,122

Bank of Arkansas:
Demand	38,566		33,378		31,778		32,761		39,897
Interest-bearing:
Transaction	144,018		205,891		187,223		156,079		101,868
Savings	1,986		1,919		1,974		2,642		2,239
Time	32,949		35,184		37,272		41,613		42,573
Total interest-bearing	178,953		242,994		226,469		200,334		146,680
Total Bank of Arkansas	217,519		276,372		258,247		233,095		186,577

Colorado State Bank & Trust:
Demand	409,942		375,060		367,407		298,470		336,252
Interest-bearing:
Transaction	541,675		536,734		519,584		528,060		676,144
Savings	26,880		27,782		27,948		27,187		25,889
Time	407,088		424,225		451,168		461,496		472,305
Total interest-bearing	975,643		988,741		998,700		1,016,743		1,174,338
Total Colorado State Bank & Trust	1,385,585		1,363,801		1,366,107		1,315,213		1,510,590

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)

	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012
Bank of Arizona:
Demand	204,092		188,365		186,382		157,754		161,093
Interest-bearing:
Transaction	364,736		339,158		376,305		378,420		360,276
Savings	2,432		2,511		2,238		2,122		1,978
Time	34,391		36,285		35,490		34,690		31,371
Total interest-bearing	401,559		377,954		414,033		415,232		393,625
Total Bank of Arizona	605,651		566,319		600,415		572,986		554,718

Bank of Kansas City:
Demand	246,739		301,780		252,216		274,482		260,095
Interest-bearing:
Transaction	69,857		77,414		81,250		53,915		85,524
Savings	1,252		1,080		1,029		983		771
Time	41,312		23,890		24,779		25,613		26,728
Total interest-bearing	112,421		102,384		107,058		80,511		113,023
Total Bank of Kansas City	359,160		404,164		359,274		354,993		373,118

TOTAL BOK FINANCIAL	$	20,269,327	$	19,491,655	$	19,496,230	$	19,860,291	$	21,179,060

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.18	%	0.22	%	0.27	%	0.19	%	0.21	%
Trading securities	1.73	%	2.25	%	2.40	%	2.13	%	1.54	%
Investment securities:
Taxable	5.75	%	5.78	%	5.88	%	5.88	%	5.90	%
Tax-exempt	1.66	%	1.60	%	1.88	%	2.38	%	2.95	%
Total investment securities	3.12	%	3.22	%	3.58	%	4.17	%	4.69	%
Available for sale securities:
Taxable	1.89	%	1.92	%	1.94	%	2.09	%	2.15	%
Tax-exempt	2.74	%	2.81	%	3.59	%	3.39	%	3.10	%
Total available for sale securities	1.89	%	1.93	%	1.96	%	2.11	%	2.16	%
Fair value option securities	2.06	%	1.80	%	1.92	%	2.06	%	1.64	%
Restricted equity securities	5.06	%	3.05	%	4.05	%	4.30	%	4.15	%
Residential mortgage loans held for sale	4.16	%	3.87	%	3.54	%	3.36	%	3.44	%
Loans	4.01	%	4.06	%	4.12	%	4.20	%	4.33	%
Allowance for loan losses
Loans, net of allowance	4.07	%	4.13	%	4.19	%	4.27	%	4.42	%
Total tax-equivalent yield on earning assets	3.02	%	3.03	%	3.10	%	3.21	%	3.30	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.11	%	0.11	%	0.12	%	0.13	%	0.15	%
Savings	0.12	%	0.13	%	0.15	%	0.16	%	0.18	%
Time	1.55	%	1.55	%	1.57	%	1.62	%	1.80	%
Total interest-bearing deposits	0.42	%	0.43	%	0.44	%	0.46	%	0.54	%
Funds purchased	0.08	%	0.07	%	0.10	%	0.13	%	0.15	%
Repurchase agreements	0.06	%	0.06	%	0.06	%	0.07	%	0.09	%
Other borrowings	0.31	%	0.28	%	0.27	%	0.49	%	0.90	%
Subordinated debt	2.48	%	2.52	%	2.54	%	2.52	%	2.56	%
Total cost of interest-bearing liabilities	0.42	%	0.42	%	0.43	%	0.46	%	0.54	%
Tax-equivalent net interest revenue spread	2.60	%	2.61	%	2.67	%	2.75	%	2.76	%
Effect of noninterest-bearing funding sources and other	0.14	%	0.14	%	0.13	%	0.15	%	0.19	%
Tax-equivalent net interest margin	2.74	%	2.75	%	2.80	%	2.90	%	2.95	%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income.

CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended
	December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013		December 31, 2012
Nonperforming assets:
Nonaccruing loans:
Commercial	$	16,760	$	19,522	$	20,869	$	19,861	$	24,467
Commercial real estate	40,850		52,502		58,693		65,175		60,626
Residential mortgage	42,320		39,256		40,534		45,426		46,608
Consumer	1,219		1,624		2,037		2,171		2,709
Total nonaccruing loans	101,149		112,904		122,133		132,633		134,410
Accruing renegotiated loans guaranteed by U.S. government agencies	54,322		50,099		48,733		47,942		38,515
Real estate and other repossessed assets:
Guaranteed by U.S. government agencies	37,431		37,906		32,155		27,864		22,365
Other	54,841		70,216		77,957		74,837		81,426
Total real estate and other repossessed assets	92,272		108,122		110,112		102,701		103,791
Total nonperforming assets	$	247,743	$	271,125	$	280,978	$	283,276	$	276,716
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	155,213	$	182,543	$	200,007	$	207,256	$	215,347

Nonaccruing loans by loan portfolio sector:
Commercial:
Energy	$	1,860	$	1,953	$	2,277	$	2,377	$	2,460
Manufacturing	592		843		876		1,848		2,007
Wholesale / retail	6,969		7,223		6,700		2,239		3,077
Integrated food services	—		—		—		—		684
Services	4,922		6,927		7,448		9,474		12,090
Healthcare	1,586		1,733		2,670		2,962		3,166
Other commercial and industrial	831		843		898		961		983
Total commercial	16,760		19,522		20,869		19,861		24,467
Commercial real estate:
Construction and land development	17,377		20,784		21,135		23,462		26,131
Retail	4,857		7,914		8,406		8,921		8,117
Office	6,391		6,838		7,828		12,851		6,829
Multifamily	7		4,350		6,447		4,501		2,706
Industrial	252		—		—		2,198		3,968
Other commercial real estate	11,966		12,616		14,877		13,242		12,875
Total commercial real estate	40,850		52,502		58,693		65,175		60,626
Residential mortgage:
Permanent mortgage	34,279		31,797		32,747		38,153		39,863
Permanent mortgage guaranteed by U.S. government agencies	777		577		83		214		489
Home equity	7,264		6,882		7,704		7,059		6,256
Total residential mortgage	42,320		39,256		40,534		45,426		46,608
Consumer	1,219		1,624		2,037		2,171		2,709
Total nonaccruing loans	$	101,149	$	112,904	$	122,133	$	132,633	$	134,410


Performing loans 90 days past due¹	$	1,415	$	188	$	2,460	$	4,229	$	3,925

CREDIT QUALITY INDICATORS BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012
Gross charge-offs	$	(3,113	)	$	(4,708	)	$	(8,552	)	$	(8,909	)	$	(8,000	)
Recoveries	6,068			4,409			6,210			6,557			3,723
Net recoveries (charge-offs)	$	2,955		$	(299	)	$	(2,342	)	$	(2,352	)	$	(4,277	)

Provision for credit losses	$	(11,400	)	$	(8,500	)	$	—		$	(8,000	)	$	(14,000	)

Allowance for loan losses to period end loans	1.45		%	1.57		%	1.63		%	1.70		%	1.75		%
Combined allowance for credit losses to period end loans	1.47		%	1.59		%	1.65		%	1.71		%	1.77		%
Nonperforming assets to period end loans and repossessed assets	1.92		%	2.18		%	2.24		%	2.32		%	2.23		%
Net charge-offs (annualized) to average loans	(0.09		)%	0.01		%	0.08		%	0.08		%	0.14		%
Allowance for loan losses to nonaccruing loans	183.29		%	172.12		%	166.31		%	155.29		%	160.34		%
Combined allowance for credit losses to nonaccruing loans	185.35		%	173.54		%	167.63		%	156.12		%	161.76		%

¹ Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT - January 29, 2014

Attached files