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

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8-K - 8-K - BOK FINANCIAL CORP	a20161231bokf8-k.htm

Exhibit 99 (a)

NASD: BOKF

For Further Information Contact:

Joseph Crivelli

Investor Relations

(918) 595-3027

BOK Financial Reports Annual and Quarterly Earnings for 2016

TULSA, Okla. (Wednesday, January 25, 2017) - BOK Financial Corporation reported net income of $232.7 million or $3.53 per diluted share for the year ended December 31, 2016. Net income for the year ended December 31, 2015 was $288.6 million or $4.21 per diluted share.

Net income for fourth quarter of 2016 totaled $50.0 million or $0.76 per diluted share. Unusual items that impacted fourth quarter earnings included:

•

A $17.0 million decrease in the fair value of mortgage servicing rights, net of economic hedges, which reduced earnings per share (EPS) by $0.18 per share; and a $5.0 million decrease in the net fair value of trading portfolio positions, which reduced EPS by $0.05 per share. Both of these items were a result of the unexpected 85 basis point increase in the 10-year U.S. Treasury interest rate and related interest rates primarily due to the market's reaction to the outcome of the presidential election.


•	Expenses related to the completion of the Mobank acquisition totaled $4.7 million or $0.05 per share.


•	Severance and other expenses related to the fourth quarter staff reductions totaled $5.0 million or $0.05 per share.

Steven G. Bradshaw, president and chief executive officer, noted, “In 2016 we achieved record net interest income and fees and commissions revenue, generated strong loan growth despite a significant reduction in energy loan outstandings, and worked through a protracted commodities downturn with performance near the top of our peer group of energy banks. We also completed the acquisition of MBT Bancshares (Mobank) in Kansas City and are already capitalizing on our opportunities in that important growth market. Finally, we adjusted our mortgage servicing rights hedging strategy to reduce volatility in a rising rate environment going forward. While the impact of changing interest rates, expense items associated with the Mobank acquisition, and other unusual expense items reduced profitability, I am as confident in our business prospects today as I have been in years. We believe we are well-positioned to continue to grow revenues and energize earnings growth in 2017.”

Bradshaw continued, "During the year we repurchased 1,005,169 shares at an average price of $66.45, including 700,000 shares in the fourth quarter at $70.03 per share. We also increased our dividend for the 11th consecutive year and deployed $102 million of capital for the Mobank acquisition. We will continue to deploy capital in a smart and disciplined fashion through a combination of organic growth, acquisitions, dividends, and more limited share buybacks."

Fourth Quarter 2016 Highlights


•	Net interest revenue totaled $194.2 million for the fourth quarter of 2016, up $6.4 million over the third quarter of 2016. Net interest margin was 2.63 percent, compared to 2.64 percent in the third quarter of 2016. Average earning assets increased $107 million over the prior quarter.

•

Fees and commissions revenue totaled $162.0 million for the fourth quarter of 2016. Excluding the impact of the change in interest rates above, fees and commissions revenue decreased $14.3 million compared to the third quarter of 2016. Mortgage banking revenue decreased $10.1 million due primarily to a decrease in outstanding loan commitments related to rising interest rates and normal seasonality. Brokerage and trading revenue decreased $4.6 million primarily due to lower gains from trading of securities and related derivative contracts and decreased volumes of derivative contracts sold to our mortgage banking customers related to changes in interest rates.


•	Operating expense was $265.5 million for the fourth quarter, largely unchanged compared to the prior quarter, excluding the unusual items noted above. Personnel expense decreased $4.6 million and non-personnel expense increased $3.6 million.

•

No provision for credit losses was recorded in the fourth quarter, compared to $10.0 million for the third quarter of 2016. The decrease in the provision for credit losses was due to improving credit metric trends, largely driven by energy price stability. The company had a net recovery of $1.2 million in the fourth quarter of 2016, compared to net charge-offs of $6.1 million in the third quarter.


•	The combined allowance for credit losses totaled $257 million or 1.52 percent of outstanding loans at December 31, 2016, compared to $256 million or 1.56 percent of outstanding loans at September 30, 2016. The December 31, 2016 coverage ratio was unchanged at 1.56 percent, excluding the effect of the Mobank acquisition.


•	Nonperforming assets that are not guaranteed by U.S. government agencies totaled $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016 and $253 million or 1.55 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at September 30, 2016.

•

Average loans increased $276 million over the previous quarter, including $162 million related to the Mobank acquisition. The remaining increase was primarily due to growth in the personal and commercial loan portfolios. Period-end outstanding loan balances were $17.0 billion at December 31, 2016, an increase of $525 million over September 30, 2016. The Mobank acquisition added $485 million to loans at December 31, 2016. Excluding the impact of the acquisition, personal loans grew by $126 million, partially offset by a $72 million decrease in commercial real estate balances.


•	Average deposits increased $938 million over the previous quarter. Growth in demand deposit and interest-bearing transaction account balances was partially offset by a decrease in time deposits. Period end deposits grew by $1.7 billion over September 30, 2016 to $22.7 billion at December 31, 2016, including the addition of $624 million in Mobank deposits.

•

The common equity Tier 1 capital ratio was 11.27 percent at December 31. In addition, the Company's Tier 1 capital ratio was 11.27 percent, total capital ratio was 12.87 percent and leverage ratio was 8.72 percent. At September 30, 2016, the common equity Tier 1 capital ratio was 11.99 percent, the Tier 1 capital ratio was 11.99 percent, total capital ratio was 13.65 percent and leverage ratio was 9.06 percent. The decrease in capital ratios was primarily due to the purchase of Mobank and share repurchases during the fourth quarter.


•	The company paid a regular quarterly cash dividend of $29 million or $0.44 per common share during the fourth quarter of 2016. On January 31, 2017, the board of directors is expected to approve a quarterly cash dividend of $0.44 per common share payable on or about February 24, 2017 to shareholders of record as of February 10, 2017.

Net Interest Revenue

Net interest revenue was $194.2 million for the fourth quarter of 2016, an increase of $6.4 million over the third quarter of 2016.

Net interest margin was 2.63 percent for the fourth quarter of 2016, compared to 2.64 percent for the third quarter of 2016. The yield on average earning assets was 2.92 percent, a decrease of 1 basis point over the prior quarter. The loan portfolio yield increased 4 basis points to 3.67 percent, excluding the impact of $2.5 million of loan fees recognized in the fourth quarter of 2016. The yield on the available for sale securities portfolio decreased 1 basis point to 2.00 percent. Funding costs were unchanged compared to the prior quarter at 0.44 percent.

Average earning assets increased $107 million during the fourth quarter of 2016, including $244 million related to the Mobank acquisition. Average loan balances increased $276 million primarily due to commercial and personal loan growth and include $162 million related to the Mobank acquisition. Average trading securities balances increased $110 million. This growth was offset by a $101 million decrease in mortgage loans held for sale, a $96 million decrease in available for sale securities and a $56 million decrease in fair value option securities held as an economic hedge of our mortgage servicing rights. Average interest-bearing deposits increased $938 million over the third quarter of 2016, including $206 million related to the Mobank acquisition. The average balance of borrowed funds decreased $238 million.

Fees and Commissions Revenue

Fees and commissions revenue totaled $162.0 million for the fourth quarter of 2016, a $19.2 million decrease compared to the third quarter of 2016.

Mortgage banking revenue totaled $28.4 million for the fourth quarter of 2016, a decrease of $10.1 million compared to the third quarter of 2016 due primarily to a decrease in outstanding loan commitments related to rising interest rates and normal seasonality. Outstanding mortgage loan commitments at December 31 decreased $312 million or 50 percent from September 30. Average primary mortgage interest rates were 38 basis points higher than in the third quarter of 2016. Margins on loans produced through retail delivery channels were unchanged from the previous quarter. Margins on loans produced through the HomeDirect online delivery channel narrowed.

Mortgage loans funded for sale during the fourth quarter decreased $675 million or 36 percent compared to the previous quarter. This decrease was primarily due to the company's strategic decision to exit the correspondent lending channel after careful consideration of continued pressure on margin due to the competitive landscape and increasing regulatory costs. Mortgage loans funded for sale from our retail and HomeDirect online channel were largely unchanged compared to the prior quarter.

Brokerage and trading revenue totaled $28.5 million for the fourth quarter of 2016, a decrease of $9.5 million compared to the previous quarter. Trading revenue decreased $6.3 million, including $5.0 million related to the unexpected increase in interest rates primarily related to the market's reaction to the outcome of the presidential election. Customer hedging revenue and retail brokerage fees also decreased compared to the prior quarter, partially offset by increased loan syndication fees.

Transaction card revenue grew by $588 thousand and fiduciary and asset management revenue increased $462 thousand, partially offset by a $303 thousand decrease in deposit service charges compared to the third quarter.

Operating Expenses

Total operating expenses were $265.5 million for the fourth quarter of 2016, an increase of $7.5 million over the third quarter of 2016. Severance and other expenses related to the fourth quarter staff reductions totaled $5.0 million. Expenses related to the completion of the Mobank acquisition totaled $4.7 million for the fourth quarter and $1.3 million for the third quarter. The third quarter of 2016 included a $5.0 million accrual related to a legal settlement. The discussion following excludes the impact of these items.

Personnel costs decreased $4.6 million compared to the previous quarter. Employee benefits expense decreased $2.7 million primarily due to updated actuarial assumptions. Regular salary expense decreased $2.3 million. Incentive compensation expense increased $382 thousand.

Non-personnel expense increased $8.6 million over the third quarter of 2016. Net losses and operating expenses of repossessed assets were $1.6 million for the fourth quarter, compared to a net gain of $926 thousand in the third quarter. The fourth quarter included a $2.0 million contribution to the BOKF Foundation. Mortgage banking costs increased $1.4 million over the third quarter primarily due to an increase in residential mortgage repurchase accruals. Occupancy and equipment expense increased $1.4 million over the third quarter primarily due to property lease termination costs and software costs.

Loans, Deposits and Capital

Loans

Outstanding loans were $17.0 billion at December 31, 2016, an increase of $525 million over September 30, including $485 million of loans from the Mobank acquisition.

Outstanding commercial loan balances increased $271 million over September 30, 2016. The Mobank acquisition added $289 million of commercial loans, primarily in the service sector. Service sector loan balances grew by $172 million. Healthcare sector loans saw strong growth, up $117 million over the prior quarter. Wholesale/retail sector loan balances decreased $25 million and energy sector loans decreased $23 million compared to September 30, 2016.

Unfunded energy loan commitments grew by $424 million in the fourth quarter to $2.7 billion. All other unfunded commercial loan commitments totaled $4.8 billion at December 31, 2016, an increase of $367 million over September 30, 2016.

Commercial real estate loans increased $15 million over September 30, 2016. The Mobank acquisition added $87 million in commercial real estate loan balances. Loans secured by office buildings increased $46 million, primarily in the Arizona market. Loans secured by industrial facilities grew by $34 million, primarily in the Texas market. Multifamily residential loans increased $29 million primarily in the Kansas City and Texas markets, partially offset by a decrease in the Oklahoma market. Retail sector loans decreased $39 million and other commercial real estate loans decreased $30 million, both primarily in the Oklahoma market. Residential construction and land development loans decreased $24 million, primarily in the Arizona market. Unfunded commercial real estate loan commitments totaled $1.1 billion at December 31, 2016, a $127 million decrease compared to September 30, 2016.

Personal loans were $840 million, an increase of $162 million over the prior quarter primarily due to growth in private bank loans and the addition of $36 million of loans from the Mobank acquisition.

Deposits

Period-end deposits totaled $22.7 billion at December 31, 2016, an increase of $1.7 billion over September 30, 2016, primarily due to normal seasonality and temporary customer activity. The Mobank acquisition added $624 million in deposits. Interest-bearing transaction account balances grew by $1.0 billion, demand deposit balances increased $554 million and time deposits increased $52 million. Among the lines of business, Wealth Management deposits increased $442 million and Commercial Banking deposits increased $389 million, partially offset by a $174 million decrease in Consumer Banking deposits.

Capital

The company's common equity Tier 1 capital ratio was 11.27 percent at December 31, 2016. In addition, the Company's Tier 1 capital ratio was 11.27 percent, total capital ratio was 12.87 percent and leverage ratio was 8.72 percent at December 31, 2016. At September 30, 2016, the Company's common equity Tier 1 capital ratio was 11.99 percent, Tier 1 capital ratio was 11.99 percent, total capital ratio was 13.65 percent and leverage ratio was 9.06 percent. The decrease in all capital ratios was due to deployment of $152 million of capital for the Mobank acquisition and share repurchases.

The company's tangible common equity ratio, a non-GAAP measure, was 8.61 percent at December 31, 2016 and 9.19 percent at September 30, 2016. The tangible common equity ratio is primarily based on total shareholders' equity which includes unrealized gains and losses on available for sale securities. The Company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

Credit Quality

Nonperforming assets totaled $357 million or 2.09 percent of outstanding loans and repossessed assets at December 31, 2016 compared to $349 million or 2.12 percent of outstanding loans and repossessed assets at September 30, 2016. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $263 million or 1.56 percent of outstanding loans and repossessed assets (excluding those guaranteed by U.S. government agencies) at December 31, 2016 and $253 million or 1.55 percent at September 30, 2016.

Excluding loans guaranteed by U.S. government agencies, nonaccruing loans totaled $219 million or 1.31 percent of outstanding loans at December 31, 2016 compared to $222 million or 1.36 percent of outstanding loans at September 30, 2016. New nonaccruing loans identified in the fourth quarter totaled $50 million, offset by $37 million in payments received, $14 million in foreclosures and repossessions and $1.7 million in charge-offs. At December 31, 2016, nonaccruing commercial loans totaled $179 million or 1.72 percent of outstanding commercial loans, including $132 million or 5.30 percent of energy loans. Nonaccruing commercial real estate loans totaled $5.5 million or 0.14 percent of outstanding commercial real estate loans.

Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, decreased to $399 million at December 31, 2016 from $478 million at September 30, 2016. Potential problem energy loans decreased $53 million to $308 million. Potential problem wholesale/retail sector loans decreased $14 million and other commercial and industrial potential problem loans decreased $10 million.

The company had a $1.2 million net recovery in the fourth quarter of 2016, compared to net charge-offs of $6.1 million for the third quarter of 2016. Gross charge-offs totaled $1.7 million for the fourth quarter, compared to $8.1 million for the previous quarter. Recoveries totaled $2.8 million for the fourth quarter of 2016 and $2.0 million for the third quarter of 2016.

After evaluating all credit factors, the company determined that no provision for credit losses was necessary during the fourth quarter of 2016 based on continued improvement in credit metrics compared to the prior quarter. The combined allowance for credit losses totaled $257 million or 1.52 percent of outstanding loans and 117.46 percent of nonaccruing loans, excluding loans guaranteed by U.S. Government agencies, at December 31, 2016. The allowance for loan losses was $246 million and the accrual for off-balance sheet credit losses was $11 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $8.7 billion at December 31, 2016 and $8.9 billion at September 30, 2016. At December 31, 2016, the available for sale portfolio consisted primarily of $5.5 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies.

The available for sale securities portfolio had a net unrealized loss of $15 million at December 31, 2016, compared to a net unrealized gain of $160 million at September 30, 2016. The decrease in the net unrealized gain was primarily due to an increase in interest rates during the fourth quarter. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies at September 30, 2016 decreased $113 million during the fourth quarter to a net unrealized loss of $15 million at December 31, 2016. Commercial mortgage-backed securities had a net unrealized loss of $18 million at December 31, 2016, compared to a net unrealized gain of $44 million at September 30, 2016.

The Company also maintains a portfolio of U.S. Treasury securities, residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. Changes in the fair value of mortgage servicing rights are highly dependent on primary mortgage interest rates offered to borrowers and other factors. Changes in the fair value of securities and interest rate derivatives are highly dependent on secondary mortgage rates, or rates required by investors. Changes in the spread between primary and secondary mortgage rates cannot be effectively hedged and can cause significant earnings volatility.

The fair value of our mortgage servicing rights increased by $40 million due primarily to an increase in residential mortgage interest rates during the fourth quarter of 2016. The fair value of securities and interest rate derivative contracts held as an economic hedge decreased by $57 million. Since mid-year 2016, the company maintained an economic hedge of its MSRs to reduce the impact of a 50 basis point decrease in long-term interest rates within its board-approved risk tolerance levels. This hedge position increased exposure to long-term interest rates. The significant increase in long-term interest rates following the presidential election resulted in a loss on this hedge, partially offset by an increase in the fair value of the MSR.

The fair value of mortgage servicing rights, net of economic hedge, increased by $1.2 million in the third quarter, primarily due to changes in short term interest rates and a decrease in average secondary mortgage rates.

Conference Call and Webcast

The Company will hold a conference call at 9 a.m. Central time on Wednesday, January 25, 2017 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-858-384-5517 and referencing replay PIN number 13652831.

About BOK Financial Corporation

BOK Financial is a $33 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, Missouri Bank and Trust Company of Kansas City dba Mobank, BOK Financial Securities, Inc. and The Milestone Group, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management, BOK Financial Asset Management, Inc. 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, 2016 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,” “will,” “intends,” 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, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected 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 changes in commodity prices, interest rates, interest rate relationships, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer 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.

Exhibit 99 (b)

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

	Dec. 31, 2016			Sept. 30, 2016			Dec. 31, 2015
ASSETS
Cash and due from banks	$	620,846		$	535,916		$	573,699
Interest-bearing cash and cash equivalents	1,916,651			2,080,978			2,069,900
Trading securities	337,628			546,615			122,404
Investment securities	546,145			546,457			597,836
Available for sale securities	8,676,829			8,862,283			9,042,733
Fair value option securities	77,046			222,409			444,217
Restricted equity securities	307,240			333,391			273,684
Residential mortgage loans held for sale	301,897			447,592			308,439
Loans:
Commercial	10,390,824			10,120,163			10,252,531
Commercial real estate	3,809,046			3,793,598			3,259,033
Residential mortgage	1,949,832			1,872,793			1,876,893
Personal	839,958			678,232			552,697
Total loans	16,989,660			16,464,786			15,941,154
Allowance for loan losses	(246,159		)	(245,103		)	(225,524		)
Loans, net of allowance	16,743,501			16,219,683			15,715,630
Premises and equipment, net	325,849			318,196			306,490
Receivables	772,952			650,368			163,480
Goodwill	448,899			382,739			385,461
Intangible assets, net	46,931			41,977			43,909
Mortgage servicing rights, net	247,073			203,621			218,605
Real estate and other repossessed assets, net	44,287			31,941			30,731
Derivative contracts, net	689,872			655,078			586,270
Cash surrender value of bank-owned life insurance	308,430			310,211			303,335
Receivable on unsettled securities sales	7,188			19,642			40,193
Other assets	353,017			370,134			249,112
TOTAL ASSETS	$	32,772,281		$	32,779,231		$	31,476,128

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,235,720		$	8,681,364		$	8,296,888
Interest-bearing transaction	10,865,105			9,824,160			9,998,954
Savings	425,470			420,349			386,252
Time	2,221,800			2,169,631			2,406,064
Total deposits	22,748,095			21,095,504			21,088,158
Funds purchased	57,929			109,031			491,192
Repurchase agreements	668,661			504,573			722,444
Other borrowings	4,846,072			6,533,443			4,837,879
Subordinated debentures	144,640			144,631			226,350
Accrued interest, taxes, and expense	146,704			191,276			119,584
Due on unsettled securities purchases	6,508			677			16,897
Derivative contracts, net	664,531			573,987			581,701
Other liabilities	182,784			193,698			124,284
TOTAL LIABILITIES	29,465,924			29,346,820			28,208,489
Shareholders' equity:
Capital, surplus and retained earnings	3,285,821			3,302,584			3,208,969
Accumulated other comprehensive income (loss)	(10,967		)	95,727			21,587
TOTAL SHAREHOLDERS' EQUITY	3,274,854			3,398,311			3,230,556
Non-controlling interests	31,503			34,100			37,083
TOTAL EQUITY	3,306,357			3,432,411			3,267,639
TOTAL LIABILITIES AND EQUITY	$	32,772,281		$	32,779,231		$	31,476,128

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

	Three Months Ended
	Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015
ASSETS
Interest-bearing cash and cash equivalents	$	2,032,785		$	2,047,991		$	2,022,028		$	2,052,840		$	1,995,945
Trading securities	476,498			366,545			237,808			188,100			150,402
Investment securities	542,869			552,592			562,391			587,465			602,369
Available for sale securities	8,766,555			8,862,590			8,890,112			8,951,435			8,971,090
Fair value option securities	210,733			266,998			368,434			450,478			435,449
Restricted equity securities	334,114			335,812			319,136			294,529			262,461
Residential mortgage loans held for sale	345,066			445,930			401,114			289,743			310,425
Loans:
Commercial	10,228,095			10,109,692			10,265,782			10,268,793			10,024,756
Commercial real estate	3,749,393			3,789,673			3,550,611			3,364,076			3,186,629
Residential mortgage	1,919,296			1,870,855			1,864,458			1,865,742			1,835,195
Personal	826,804			677,530			582,281			493,382			540,418
Total loans	16,723,588			16,447,750			16,263,132			15,991,993			15,586,998
Allowance for loan losses	(246,977		)	(247,901		)	(245,448		)	(234,116		)	(207,156		)
Total loans, net	16,476,611			16,199,849			16,017,684			15,757,877			15,379,842
Total earning assets	29,185,231			29,078,307			28,818,707			28,572,467			28,107,983
Cash and due from banks	578,694			511,534			507,085			505,522			514,629
Derivative contracts, net	681,455			766,671			823,584			632,102			657,780
Cash surrender value of bank-owned life insurance	309,532			308,670			306,318			304,141			301,793
Receivable on unsettled securities sales	33,813			259,906			49,568			115,101			62,228
Other assets	2,172,351			1,721,385			1,480,780			1,379,138			1,435,763
TOTAL ASSETS	$	32,961,076		$	32,646,473		$	31,986,042		$	31,508,471		$	31,080,176

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,124,595		$	8,497,037		$	8,162,134		$	8,105,756		$	8,312,961
Interest-bearing transaction	9,980,132			9,650,618			9,590,855			9,756,843			9,527,491
Savings	421,654			420,009			417,122			397,479			382,284
Time	2,177,035			2,197,350			2,297,621			2,366,543			2,482,714
Total deposits	21,703,416			20,765,014			20,467,732			20,626,621			20,705,450
Funds purchased	62,004			68,280			70,682			112,211			73,220
Repurchase agreements	560,891			522,822			611,264			662,640			623,921
Other borrowings	6,072,150			6,342,369			6,076,028			5,583,917			4,957,175
Subordinated debentures	144,635			255,890			232,795			226,368			226,332
Derivative contracts, net	682,808			747,187			791,313			544,722			632,699
Due on unsettled securities purchases	77,575			200,574			93,812			158,050			248,811
Other liabilities	321,404			352,671			298,170			268,705			251,953
TOTAL LIABILITIES	29,624,883			29,254,807			28,641,796			28,183,234			27,719,561
Total equity	3,336,193			3,391,666			3,344,246			3,325,237			3,360,615
TOTAL LIABILITIES AND EQUITY	$	32,961,076		$	32,646,473		$	31,986,042		$	31,508,471		$	31,080,176

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

	Three Months Ended						Year Ended
	Dec. 31,						Dec. 31,
	2016			2015			2016			2015

Interest revenue	$	215,737		$	196,782		$	829,117		$	766,828
Interest expense	21,539			15,521			81,889			63,474
Net interest revenue	194,198			181,261			747,228			703,354
Provision for credit losses	—			22,500			65,000			34,000
Net interest revenue after provision for credit losses	194,198			158,761			682,228			669,354
Other operating revenue:
Brokerage and trading revenue	28,500			30,255			138,377			129,556
Transaction card revenue	34,521			32,319			135,758			128,621
Fiduciary and asset management revenue	34,535			31,165			135,477			126,153
Deposit service charges and fees	23,365			22,813			92,193			90,431
Mortgage banking revenue	28,414			22,907			133,914			126,002
Other revenue	12,693			14,233			51,029			49,883
Total fees and commissions	162,028			153,692			686,748			650,646
Other gains (losses), net	(1,279		)	2,329			4,030			5,702
Gain (loss) on derivatives, net	(35,815		)	(732		)	(15,685		)	430
Loss on fair value option securities, net	(20,922		)	(4,127		)	(10,555		)	(3,684		)
Change in fair value of mortgage servicing rights	39,751			7,416			(2,193		)	(4,853		)
Gain (loss) on available for sale securities, net	(9		)	2,132			11,675			12,058
Total other-than-temporary impairment losses	—			(1,662		)	—			(2,443		)
Portion of loss recognized in other comprehensive income	—			(65		)	—			624
Net impairment losses recognized in earnings	—			(1,727		)	—			(1,819		)
Total other operating revenue	143,754			158,983			674,020			658,480
Other operating expense:
Personnel	141,132			131,104			553,119			515,298
Business promotion	7,344			8,416			26,582			27,851
Charitable contributions to BOKF Foundation	2,000			—			2,000			796
Professional fees and services	16,828			10,357			56,783			40,123
Net occupancy and equipment	21,470			19,356			80,024			76,016
Insurance	8,705			5,415			32,489			20,375
Data processing and communications	33,691			31,248			131,841			122,383
Printing, postage and supplies	3,998			3,108			15,584			13,498
Net losses and operating expenses of repossessed assets	1,627			343			3,359			1,446
Amortization of intangible assets	1,558			1,090			6,862			4,359
Mortgage banking costs	17,348			11,442			61,387			38,813
Other expense	9,846			8,547			47,560			35,233
Total other operating expense	265,547			230,426			1,017,590			896,191

Net income before taxes	72,405			87,318			338,658			431,643
Federal and state income taxes	22,496			26,242			106,377			139,384

Net income	49,909			61,076			232,281			292,259
Net income (loss) attributable to non-controlling interests	(117		)	1,475			(387		)	3,694
Net income attributable to BOK Financial Corporation shareholders	$	50,026		$	59,601		$	232,668		$	288,565

Average shares outstanding:
Basic	64,719,018			66,378,380			65,085,627			67,594,689
Diluted	64,787,728			66,467,729			65,143,898			67,691,658

Net income per share:
Basic	$	0.76		$	0.89		$	3.53		$	4.22
Diluted	$	0.76		$	0.89		$	3.53		$	4.21

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

	Three Months Ended
	Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015
Capital:
Period-end shareholders' equity	$	3,274,854		$	3,398,311		$	3,368,833		$	3,321,555		$	3,230,556
Risk weighted assets	$	25,152,718		$	24,358,385		$	24,191,016		$	23,707,824		$	23,429,899
Risk-based capital ratios¹:
Common equity tier 1	11.27		%	11.99		%	11.86		%	12.00		%	N/A
Tier 1	11.27		%	11.99		%	11.86		%	12.00		%	12.13		%
Total capital	12.87		%	13.65		%	13.51		%	13.21		%	13.30		%
Leverage ratio	8.72		%	9.06		%	9.06		%	9.12		%	9.25		%
Tangible common equity ratio²	8.61		%	9.19		%	9.33		%	9.34		%	9.02		%

Common stock:
Book value per share	$	50.12		$	51.56		$	51.15		$	50.21		$	49.03
Tangible book value per share	42.53			45.12			44.68			43.73			42.51
Market value per share:
High	$	85.00		$	70.05		$	65.14		$	60.16		$	74.73
Low	$	67.11		$	56.36		$	51.00		$	43.74		$	58.25
Cash dividends paid	$	28,860		$	28,181		$	28,241		$	28,294		$	28,967
Dividend payout ratio	57.69		%	37.94		%	42.92		%	66.47		%	48.60		%
Shares outstanding, net	65,337,432			65,910,454			65,866,317			66,155,103			65,894,032

Stock buy-back program:
Shares repurchased	700,000			—			305,169			—			1,874,074
Amount	$	49,021		$	—		$	17,771		$	—		$	119,780
Average price per share	$	70.03		$	—		$	58.23		$	—		$	63.91

Performance ratios (quarter annualized):
Return on average assets	0.60		%	0.91		%	0.83		%	0.54		%	0.76		%
Return on average equity	6.03		%	8.80		%	8.00		%	5.21		%	7.12		%
Net interest margin	2.63		%	2.64		%	2.63		%	2.65		%	2.64		%
Efficiency ratio	72.93		%	68.88		%	68.16		%	68.84		%	67.73		%

¹ Risk-based capital ratios March 31, 2015 and thereafter calculated under revised regulatory capital rules issued July 2013 and effective for the Company January 1, 2015. Previous risk-based capital ratios presented are calculated in accordance with then current regulatory capital rules.

Reconciliation of non-GAAP measures:
² Tangible common equity ratio:
Total shareholders' equity	$	3,274,854		$	3,398,311		$	3,368,833		$	3,321,555		$	3,230,556
Less: Goodwill and intangible assets, net	495,830			424,716			426,111			428,733			429,370
Tangible common equity	$	2,779,024		$	2,973,595		$	2,942,722		$	2,892,822		$	2,801,186

Total assets	$	32,772,281		$	32,779,231		$	31,970,450		$	31,413,945		$	31,476,128
Less: Goodwill and intangible assets, net	495,830			424,716			426,111			428,733			429,370
Tangible assets	$	32,276,451		$	32,354,515		$	31,544,339		$	30,985,212		$	31,046,758

Tangible common equity ratio	8.61		%	9.19		%	9.33		%	9.34		%	9.02		%

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

	Three Months Ended
	Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015
Other data:
Fiduciary assets	$	41,781,564		$	41,222,162		$	39,924,734		$	39,113,305		$	38,333,638
Tax equivalent adjustment	$	4,389		$	4,455		$	4,372		$	4,385		$	3,222
Net unrealized gain (loss) on available for sale securities	$	(14,899	)	$	159,533		$	195,385		$	155,236		$	38,109

Mortgage banking:
Mortgage servicing portfolio	$	21,997,568		$	21,851,536		$	21,178,387		$	20,294,662		$	19,678,226
Mortgage commitments	$	318,359		$	630,804		$	965,631		$	902,986		$	601,147
Mortgage loans funded for sale	$	1,189,975		$	1,864,583		$	1,818,844		$	1,244,015		$	1,365,431
Mortgage loan refinances to total fundings	63		%	51		%	44		%	49		%	41		%
Mortgage loans sold	$	1,347,607		$	1,873,709		$	1,742,582		$	1,239,391		$	1,424,527

Net realized gains on mortgage loans sold	$	21,523		$	23,110		$	15,865		$	8,449		$	13,573
Change in net unrealized gain on mortgage loans held for sale	(9,586		)	(1,152		)	3,221			8,198			(5,615		)
Total production revenue	11,937			21,958			19,086			16,647			7,958
Servicing revenue	16,477			16,558			15,798			15,453			14,949
Total mortgage banking revenue	$	28,414		$	38,516		$	34,884		$	32,100		$	22,907

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(35,868	)	$	2,268		$	10,766		$	7,138		$	(732	)
Gain (loss) on fair value option securities, net	(20,922		)	(3,355		)	4,279			9,443			(4,127		)
Gain (loss) on economic hedge of mortgage servicing rights	(56,790		)	(1,087		)	15,045			16,581			(4,859		)
Gain (loss) on changes in fair value of mortgage servicing rights	39,751			2,327			(16,283		)	(27,988		)	7,416
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges	$	(17,039	)	$	1,240		$	(1,238	)	$	(11,407	)	$	2,557

Net interest revenue on fair value option securities	$	114		$	861		$	1,348		$	2,033		$	2,137

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

	Three Months Ended
	Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015

Interest revenue	$	215,737		$	209,317		$	202,267		$	201,796		$	196,782
Interest expense	21,539			21,471			19,655			19,224			15,521
Net interest revenue	194,198			187,846			182,612			182,572			181,261
Provision for credit losses	—			10,000			20,000			35,000			22,500
Net interest revenue after provision for credit losses	194,198			177,846			162,612			147,572			158,761
Other operating revenue:
Brokerage and trading revenue	28,500			38,006			39,530			32,341			30,255
Transaction card revenue	34,521			33,933			34,950			32,354			32,319
Fiduciary and asset management revenue	34,535			34,073			34,813			32,056			31,165
Deposit service charges and fees	23,365			23,668			22,618			22,542			22,813
Mortgage banking revenue	28,414			38,516			34,884			32,100			22,907
Other revenue	12,693			13,080			13,352			11,904			14,233
Total fees and commissions	162,028			181,276			180,147			163,297			153,692
Other gains (losses), net	(1,279		)	2,442			1,307			1,560			2,329
Gain (loss) on derivatives, net	(35,815		)	2,226			10,766			7,138			(732		)
Gain (loss) on fair value option securities, net	(20,922		)	(3,355		)	4,279			9,443			(4,127		)
Change in fair value of mortgage servicing rights	39,751			2,327			(16,283		)	(27,988		)	7,416
Gain on available for sale securities, net	(9		)	2,394			5,326			3,964			2,132
Total other-than-temporary impairment losses	—			—			—			—			(1,662		)
Portion of loss recognized in (reclassified from) other comprehensive income	—			—			—			—			(65		)
Net impairment losses recognized in earnings	—			—			—			—			(1,727		)
Total other operating revenue	143,754			187,310			185,542			157,414			158,983
Other operating expense:
Personnel	141,132			139,212			139,213			133,562			131,104
Business promotion	7,344			6,839			6,703			5,696			8,416
Contribution to BOKF Foundation	2,000			—			—			—			—
Professional fees and services	16,828			14,038			14,158			11,759			10,357
Net occupancy and equipment	21,470			20,111			19,677			18,766			19,356
Insurance	8,705			9,390			7,129			7,265			5,415
Data processing and communications	33,691			33,331			32,802			32,017			31,248
Printing, postage and supplies	3,998			3,790			3,889			3,907			3,108
Net losses (gains) and operating expenses of repossessed assets	1,627			(926		)	1,588			1,070			343
Amortization of intangible assets	1,558			1,521			2,624			1,159			1,090
Mortgage banking costs	17,348			15,963			15,746			12,330			11,442
Other expense	9,846			14,819			7,856			15,039			8,547
Total other operating expense	265,547			258,088			251,385			242,570			230,426
Net income before taxes	72,405			107,068			96,769			62,416			87,318
Federal and state income taxes	22,496			31,956			30,497			21,428			26,242
Net income	49,909			75,112			66,272			40,988			61,076
Net income (loss) attributable to non-controlling interests	(117		)	835			471			(1,576		)	1,475
Net income attributable to BOK Financial Corporation shareholders	$	50,026		$	74,277		$	65,801		$	42,564		$	59,601

Average shares outstanding:
Basic	64,719,018			65,085,392			65,245,887			65,296,541			66,378,380
Diluted	64,787,728			65,157,841			65,302,926			65,331,428			66,467,729
Net income per share:
Basic	$	0.76		$	1.13		$	1.00		$	0.64		$	0.89
Diluted	$	0.76		$	1.13		$	1.00		$	0.64		$	0.89

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

	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015
Commercial:
Services	3,108,990		2,936,599		2,830,864		2,728,891		2,784,276
Energy	$	2,497,868	$	2,520,804	$	2,818,656	$	3,029,420	$	3,097,328
Healthcare	2,201,916		2,085,046		2,051,146		1,995,425		1,883,380
Wholesale/retail	1,576,818		1,602,030		1,532,957		1,451,846		1,422,064
Manufacturing	514,975		499,486		595,403		600,645		556,729
Other commercial and industrial	490,257		476,198		527,411		482,198		508,754
Total commercial	10,390,824		10,120,163		10,356,437		10,288,425		10,252,531

Commercial real estate:
Multifamily	903,272		873,773		787,200		733,689		751,085
Industrial	871,749		838,021		645,586		564,467		563,169
Office	798,888		752,705		769,112		695,552		637,707
Retail	761,888		801,377		795,419		810,522		796,499
Residential construction and land development	135,533		159,946		157,576		171,949		160,426
Other real estate	337,716		367,776		427,073		394,328		350,147
Total commercial real estate	3,809,046		3,793,598		3,581,966		3,370,507		3,259,033

Residential mortgage:
Permanent mortgage	1,006,820		969,558		969,007		948,405		945,336
Permanent mortgages guaranteed by U.S. government agencies	199,387		190,309		192,732		197,350		196,937
Home equity	743,625		712,926		719,184		723,554		734,620
Total residential mortgage	1,949,832		1,872,793		1,880,923		1,869,309		1,876,893

Personal	839,958		678,232		587,423		494,325		552,697

Total	$	16,989,660	$	16,464,786	$	16,406,749	$	16,022,566	$	15,941,154

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

	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015

Bank of Oklahoma:
Commercial	$	3,370,259	$	3,545,924	$	3,698,215	$	3,656,034	$	3,782,687
Commercial real estate	684,381		795,806		781,458		747,689		739,829
Residential mortgage	1,407,197		1,401,166		1,415,766		1,411,409		1,409,114
Personal	303,823		271,420		246,229		204,158		255,387
Total Bank of Oklahoma	5,765,660		6,014,316		6,141,668		6,019,290		6,187,017

Bank of Texas:
Commercial	4,022,455		3,903,218		3,901,632		3,936,809		3,908,425
Commercial real estate	1,415,011		1,400,709		1,311,408		1,211,978		1,204,202
Residential mortgage	233,981		229,345		222,548		217,539		219,126
Personal	306,748		278,167		233,304		210,456		203,496
Total Bank of Texas	5,978,195		5,811,439		5,668,892		5,576,782		5,535,249

Bank of Albuquerque:
Commercial	399,256		398,147		398,427		402,082		375,839
Commercial real estate	284,603		299,785		322,956		323,059		313,422
Residential mortgage	108,058		110,478		114,226		117,655		120,507
Personal	11,483		11,333		10,569		10,823		11,557
Total Bank of Albuquerque	803,400		819,743		846,178		853,619		821,325

Bank of Arkansas:
Commercial	86,577		83,544		81,227		79,808		92,359
Commercial real estate	73,616		72,649		69,235		66,674		69,320
Residential mortgage	7,015		6,936		6,874		7,212		8,169
Personal	6,524		6,757		7,025		918		819
Total Bank of Arkansas	173,732		169,886		164,361		154,612		170,667

Colorado State Bank & Trust:
Commercial	1,018,208		1,013,314		1,076,620		1,030,348		987,076
Commercial real estate	265,264		254,078		237,569		219,078		223,946
Residential mortgage	59,631		59,838		59,425		52,961		53,782
Personal	50,372		42,901		35,064		24,497		23,384
Total Colorado State Bank & Trust	1,393,475		1,370,131		1,408,678		1,326,884		1,288,188

Bank of Arizona:
Commercial	686,253		680,447		670,814		656,527		606,733
Commercial real estate	747,409		726,542		639,112		605,383		507,523
Residential mortgage	36,265		39,206		38,998		40,338		44,047
Personal	52,553		31,205		24,248		18,372		31,060
Total Bank of Arizona	1,522,480		1,477,400		1,373,172		1,320,620		1,189,363

Bank of Kansas City / Mobank:
Commercial	807,816		495,569		529,502		526,817		499,412
Commercial real estate	338,762		244,029		220,228		196,646		200,791
Residential mortgage	97,685		25,824		23,086		22,195		22,148
Personal	108,455		36,449		30,984		25,101		26,994
Total Bank of Kansas City / Mobank	1,352,718		801,871		803,800		770,759		749,345

TOTAL BOK FINANCIAL	$	16,989,660	$	16,464,786	$	16,406,749	$	16,022,566	$	15,941,154

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)

	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015
Bank of Oklahoma:
Demand	$	3,993,170	$	4,158,273	$	4,020,181	$	3,813,128	$	4,133,520
Interest-bearing:
Transaction	6,345,536		5,701,983		5,741,302		5,706,067		5,971,819
Savings	241,696		242,959		247,984		246,122		226,733
Time	1,118,355		1,091,464		1,167,271		1,198,022		1,202,274
Total interest-bearing	7,705,587		7,036,406		7,156,557		7,150,211		7,400,826
Total Bank of Oklahoma	11,698,757		11,194,679		11,176,738		10,963,339		11,534,346

Bank of Texas:
Demand	3,137,009		2,734,981		2,677,253		2,571,883		2,627,764
Interest-bearing:
Transaction	2,388,812		2,240,040		2,035,634		2,106,905		2,132,099
Savings	83,101		84,642		83,862		83,263		77,902
Time	535,642		528,380		516,231		530,657		549,740
Total interest-bearing	3,007,555		2,853,062		2,635,727		2,720,825		2,759,741
Total Bank of Texas	6,144,564		5,588,043		5,312,980		5,292,708		5,387,505

Bank of Albuquerque:
Demand	627,979		584,681		530,853		557,200		487,286
Interest-bearing:
Transaction	590,571		555,326		573,690		560,684		563,723
Savings	49,963		54,480		49,200		47,187		43,672
Time	238,408		244,706		250,068		259,630		267,821
Total interest-bearing	878,942		854,512		872,958		867,501		875,216
Total Bank of Albuquerque	1,506,921		1,439,193		1,403,811		1,424,701		1,362,502

Bank of Arkansas:
Demand	26,389		32,203		30,607		31,318		27,252
Interest-bearing:
Transaction	105,232		313,480		278,335		265,803		202,857
Savings	2,192		2,051		1,853		1,929		1,747
Time	16,696		17,534		18,911		21,035		24,983
Total interest-bearing	124,120		333,065		299,099		288,767		229,587
Total Bank of Arkansas	150,509		365,268		329,706		320,085		256,839

Colorado State Bank & Trust:
Demand	576,000		517,063		528,124		413,506		497,318
Interest-bearing:
Transaction	616,679		623,055		625,240		610,077		616,697
Savings	32,866		31,613		31,509		33,108		31,927
Time	242,782		247,667		254,164		271,475		296,224
Total interest-bearing	892,327		902,335		910,913		914,660		944,848
Total Colorado State Bank & Trust	1,468,327		1,419,398		1,439,037		1,328,166		1,442,166

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

	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015
Bank of Arizona:
Demand	366,755		418,718		396,837		341,828		326,324
Interest-bearing:
Transaction	305,099		303,750		302,297		313,825		358,556
Savings	2,973		2,959		3,198		3,277		2,893
Time	27,765		27,935		28,681		29,053		29,498
Total interest-bearing	335,837		334,644		334,176		346,155		390,947
Total Bank of Arizona	702,592		753,362		731,013		687,983		717,271

Bank of Kansas City / Mobank:
Demand	508,418		235,445		240,754		221,812		197,424
Interest-bearing:
Transaction	513,176		86,526		112,371		146,405		153,203
Savings	12,679		1,645		1,656		1,619		1,378
Time	42,152		11,945		11,735		31,502		35,524
Total interest-bearing	568,007		100,116		125,762		179,526		190,105
Total Bank of Kansas City / Mobank	1,076,425		335,561		366,516		401,338		387,529

TOTAL BOK FINANCIAL	$	22,748,095	$	21,095,504	$	20,759,801	$	20,418,320	$	21,088,158

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.55	%	0.51	%	0.51	%	0.53	%	0.29	%
Trading securities	1.74	%	2.71	%	1.89	%	2.47	%	2.86	%
Investment securities:
Taxable	5.39	%	5.34	%	5.41	%	5.53	%	5.41	%
Tax-exempt	2.33	%	2.26	%	2.25	%	2.22	%	1.53	%
Total investment securities	3.60	%	3.51	%	3.52	%	3.51	%	3.03	%
Available for sale securities:
Taxable	1.98	%	1.99	%	2.01	%	2.06	%	2.02	%
Tax-exempt	5.27	%	5.47	%	5.06	%	4.95	%	4.22	%
Total available for sale securities	2.00	%	2.01	%	2.04	%	2.08	%	2.04	%
Fair value option securities	0.99	%	1.70	%	2.19	%	2.38	%	2.32	%
Restricted equity securities	5.45	%	5.37	%	4.84	%	5.85	%	5.95	%
Residential mortgage loans held for sale	3.31	%	3.28	%	3.53	%	3.75	%	3.85	%
Loans	3.67	%	3.63	%	3.58	%	3.57	%	3.55	%
Allowance for loan losses
Loans, net of allowance	3.72	%	3.69	%	3.63	%	3.63	%	3.60	%
Total tax-equivalent yield on earning assets	2.92	%	2.93	%	2.91	%	2.92	%	2.86	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.16	%	0.14	%	0.14	%	0.14	%	0.09	%
Savings	0.09	%	0.09	%	0.10	%	0.09	%	0.09	%
Time	1.12	%	1.14	%	1.16	%	1.21	%	1.26	%
Total interest-bearing deposits	0.32	%	0.32	%	0.33	%	0.34	%	0.32	%
Funds purchased	0.28	%	0.19	%	0.19	%	0.27	%	0.11	%
Repurchase agreements	0.02	%	0.04	%	0.05	%	0.05	%	0.04	%
Other borrowings	0.61	%	0.57	%	0.57	%	0.56	%	0.38	%
Subordinated debt	5.51	%	3.84	%	1.52	%	1.26	%	1.13	%
Total cost of interest-bearing liabilities	0.44	%	0.44	%	0.41	%	0.40	%	0.34	%
Tax-equivalent net interest revenue spread	2.48	%	2.49	%	2.50	%	2.52	%	2.52	%
Effect of noninterest-bearing funding sources and other	0.15	%	0.15	%	0.13	%	0.13	%	0.12	%
Tax-equivalent net interest margin	2.63	%	2.64	%	2.63	%	2.65	%	2.64	%

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. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

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

	Three Months Ended
	Dec. 31, 2016		Sept. 30, 2016		June 30, 2016		Mar. 31, 2016		Dec. 31, 2015
Nonperforming assets:
Nonaccruing loans:
Commercial	$	178,953	$	176,464	$	181,989	$	174,652	$	76,424
Commercial real estate	5,521		7,350		7,780		9,270		9,001
Residential mortgage	46,220		52,452		57,061		57,577		61,240
Personal	290		686		354		331		463
Total nonaccruing loans	230,984		236,952		247,184		241,830		147,128
Accruing renegotiated loans guaranteed by U.S. government agencies	81,370		80,306		78,806		77,597		74,049
Real estate and other repossessed assets:	44,287		31,941		24,054		29,896		30,731
Total nonperforming assets	$	356,641	$	349,199	$	350,044	$	349,323	$	251,908
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	263,425	$	253,461	$	251,497	$	252,176	$	155,959

Nonaccruing loans by loan portfolio sector:
Commercial:
Services	$	8,173	$	8,477	$	9,388	$	9,512	$	10,290
Energy	$	132,499	$	142,966	$	168,145	$	159,553	$	61,189
Healthcare	825		855		875		1,023		1,072
Wholesale/retail	11,407		2,453		2,772		3,685		2,919
Manufacturing	4,931		274		293		312		331
Other commercial and industrial	21,118		21,439		516		567		623
Total commercial	178,953		176,464		181,989		174,652		76,424
Commercial real estate:
Multifamily	38		51		65		250		274
Industrial	76		76		76		76		76
Office	426		882		606		629		651
Retail	326		1,249		1,265		1,302		1,319
Residential construction and land development	3,433		3,739		4,261		4,789		4,409
Other commercial real estate	1,222		1,353		1,507		2,224		2,272
Total commercial real estate	5,521		7,350		7,780		9,270		9,001
Residential mortgage:
Permanent mortgage	22,855		25,956		27,228		27,497		28,984
Permanent mortgage guaranteed by U.S. government agencies	11,846		15,432		19,741		19,550		21,900
Home equity	11,519		11,064		10,092		10,530		10,356
Total residential mortgage	46,220		52,452		57,061		57,577		61,240
Personal	290		686		354		331		463
Total nonaccruing loans	$	230,984	$	236,952	$	247,184	$	241,830	$	147,128

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

	Three Months Ended
	Dec. 31, 2016			Sept. 30, 2016			June 30, 2016			Mar. 31, 2016			Dec. 31, 2015

Performing loans 90 days past due¹	$	5		$	3,839		$	2,899		$	8,019		$	1,207

Gross charge-offs	$	(1,651	)	$	(8,101	)	$	(8,845	)	$	(23,991	)	$	(4,851	)
Recoveries	2,813			2,038			1,386			1,519			1,870
Net recoveries (charge-offs)	$	1,162		$	(6,063	)	$	(7,459	)	$	(22,472	)	$	(2,981	)

Provision for credit losses	$	—		$	10,000		$	20,000		$	35,000		$	22,500

Allowance for loan losses to period end loans	1.45		%	1.49		%	1.48		%	1.46		%	1.41		%
Combined allowance for credit losses to period end loans	1.52		%	1.56		%	1.54		%	1.50		%	1.43		%
Nonperforming assets to period end loans and repossessed assets	2.09		%	2.12		%	2.13		%	2.18		%	1.58		%
Net charge-offs (annualized) to average loans	(0.03		)%	0.15		%	0.18		%	0.56		%	0.08		%
Allowance for loan losses to nonaccruing loans¹	112.33		%	110.65		%	106.95		%	104.89		%	180.09		%
Combined allowance for credit losses to nonaccruing loans¹	117.46		%	115.67		%	110.93		%	107.87		%	181.46		%

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

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - January 25, 2017

Attached files