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

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8-K - 8-K - BOK FINANCIAL CORP	a20191231bokfpressrele.htm

Exhibit 99(a)

NASD: BOKF

BOK Financial Reports Record Annual Earnings of $501 million or $7.03 Per Share

Earnings of $110 million or $1.56 Per Share in the Fourth Quarter

CEO Commentary

“The fourth quarter concluded our second-consecutive year of record earnings for the organization,” said Steven G. Bradshaw, president and chief executive officer. “Achieving our business integration and financial goals for CoBiz early in 2019 set the tone for a monumental year, and helped drive momentum in two of our high-growth markets. The balance between our banking and fee service businesses was evident all year, allowing us to continue our strong earnings growth even with industry headwinds intensifying. This is a testament to how BOK Financial has been carefully constructed over many years with the distinct ability to outperform in challenging conditions.”

Bradshaw continued, “While the economic and political environment in 2020 will bring its own set of challenges, our focus remains on the long-term. We fully expect that our approach to creating and sustaining earnings and growing shareholder value will continue to serve us well in 2020.”

2019 Financial Highlights


•	Net income for the year ended December 31, 2019 totaled $500.8 million or $7.03 per diluted share compared to $445.6 million or $6.63 per diluted share for the year ended December 31, 2018.


•	Net interest revenue totaled $1.1 billion, an increase of $128.0 million. CoBiz added $158.5 million to net interest revenue, including $37.8 million of net purchase accounting discount accretion for 2019. CoBiz added $43.1 million to net interest revenue for 2018. Net interest margin was 3.11 percent for 2019 compared to 3.20 percent for 2018.


•	Fees and commissions revenue increased $59.0 million to $702.2 million in 2019. Strong growth in brokerage and trading revenue and mortgage banking revenue, which were both positively affected by lower mortgage interest rates in 2019, contributed to the majority of the increase.

•

Operating expense totaled $1.1 billion in 2019, an increase of $104.2 million. We incurred $17.2 million of closing and integration costs in 2019 compared to $16.6 million in 2018. Expenses related to CoBiz operations were $84.0 million in 2019 and $29.7 million in 2018. Excluding these costs, operating expense increased $49.3 million or 5 percent, primarily related to growth in personnel expense.


•	Period-end loans were up $94 million to $21.8 billion at December 31, 2019 and period-end deposits grew $2.4 billion to $27.6 billion.

Fourth Quarter 2019 Financial Highlights


•	Net income was $110.4 million or $1.56 per diluted share for the fourth quarter of 2019 and $142.2 million or $2.00 per diluted share for the third quarter of 2019.


•	Net interest revenue totaled $270.2 million, a decrease of $8.8 million. Net interest margin was 2.88 percent compared to 3.01 percent in the third quarter of 2019. Lower loan discount accretion, changes in funding mix, and the two recent federal funds rate cuts by the Federal Reserve contributed to compression in the net interest margin.


•	Fees and commissions revenue totaled $179.4 million, a decrease of $6.7 million, primarily due to a seasonal decline in mortgage banking revenue.

Fourth Quarter 2019 Financial Highlights con't


•	Operating expense increased $9.5 million to $288.8 million. Personnel expense increased $5.8 million while non-personnel expense increased $3.7 million over the third quarter of 2019.


•	A $19.0 million provision for credit losses was recorded in the fourth quarter of 2019 compared to $12.0 million in the third quarter of 2019. The combined allowance for credit losses totaled $212 million or 0.98 percent of outstanding loans compared to $206 million or 0.92 percent in the previous quarter.


•	Average loans decreased $177 million to $22.2 billion while period-end loans decreased $534 million to $21.8 billion, largely due to decreases in commercial and commercial real estate loans.


•	Average deposits increased $1.4 billion to $27.1 billion and period-end deposits increased $1.5 billion to $27.6 billion.

•

Commercial banking contributed $81.7 million to net income, a decrease of $18.9 million compared to the prior quarter. Net interest revenue decreased by $16.7 million due to a decrease in loan volume combined with decreased yields. Average loans decreased by $126 million to $19.1 billion. Fee revenue decreased $2.8 million, largely due to lower syndication fees. Average deposits increased $587 million to $11.4 billion, including an increase in interest-bearing transaction deposits partially offset by a decrease in demand deposits.

•

Consumer banking contributed $8.3 million to net income, decreasing $8.4 million. Net interest revenue decreased $5.3 million, largely due to a lower yield on deposits sold to our Funds Management unit. Fee revenue decreased $6.6 million. A seasonal decline in mortgage production reduced mortgage banking revenue by $4.8 million. Mortgage production volume decreased $278 million to $635 million and gain on sale margin decreased 7 basis points to 1.44 percent.

•

Wealth Management contributed $22.9 million to net income, consistent with the prior quarter. Fee revenue increased $3.3 million, largely related to brokerage and trading revenue, partially offset by a $1.2 million decrease in net interest revenue. Total operating expenses increased $3.1 million, primarily related to variable compensation that is related to revenue growth. Assets under management or administration were $82.7 billion at December 31, 2019 compared to $80.8 billion at September 30, 2019. Fiduciary assets totaled $52.4 billion at December 31, 2019 and $49.3 billion at September 30, 2019.



Net Interest Revenue

Net interest revenue was $270.2 million for the fourth quarter of 2019, an $8.8 million decrease compared to the third quarter of 2019. Discount accretion on acquired loans totaled $5.8 million for the fourth quarter and $10.9 million for the third quarter.

Average earning assets increased $415 million compared to the third quarter of 2019. Available for sale securities increased $586 million as we continue to position our balance sheet for the current rate environment. Average loan balances decreased $177 million and interest-bearing cash and cash equivalents increased $72 million. Growth in average earning assets was largely funded by a $1.5 billion increase in interest-bearing deposits while other borrowed funds decreased $863 million.

Net interest margin was 2.88 percent compared to 3.01 percent in the previous quarter. A decrease in demand deposits combined with an increase in receivables from trading activities reduced net interest margin by 9 basis points. Lower loan discount accretion reduced net interest margin by 6 basis points. A 3 basis point increase from higher loan fees was partially offset by spread compression.

The yield on average earning assets was 3.93 percent, a 32 basis point decrease from the prior quarter. The loan portfolio yield was 4.75 percent, down 37 basis points. The yield on the available for sale securities portfolio decreased 8 basis points to 2.52 percent while the yield on interest-bearing cash and cash equivalents decreased 80 basis points.

Funding costs were 1.40 percent, down 28 basis points. The cost of interest-bearing deposits decreased 8 basis points to 1.09 percent. The cost of other borrowed funds was down 48 basis points to 1.83 percent.



Fees and Commissions Revenue

Fees and commissions revenue totaled $179.4 million for the fourth quarter of 2019, a decrease of $6.7 million compared to the third quarter of 2019.

Mortgage banking revenue decreased $4.8 million. Mortgage loan production volume decreased 30 percent, primarily due to seasonality. Other revenue decreased $2.3 million primarily due to lower revenue from repossessed oil and gas properties. Brokerage and trading revenue was unchanged from the previous quarter. Growth in trading revenue of $5.6 million was offset by decreases in customer hedging revenue and loan syndication fees. A decrease in overdraft service charges was offset by an increase in trust fees and commissions.



Operating Expense

Total operating expense was $288.8 million for the fourth quarter of 2019, an increase of $9.5 million over the third quarter of 2019.

Personnel expense increased $5.8 million. Incentive compensation increased $4.3 million, primarily due to increased transaction activity in wealth management. The fourth quarter included approximately $2.0 million in severance costs due to realignment of personnel for the current operating environment.

Non-personnel expense increased $3.7 million over the third quarter of 2019. The fourth quarter included a $2.0 million charitable contribution to the BOKF Foundation, which provides support to many nonprofit partners in our communities.



Loans, Deposits and Capital

Loans

Outstanding loans were $21.8 billion at December 31, 2019, a decrease of $534 million compared September 30, 2019. General paydowns in energy and commercial real estate, along with two anticipated large year-end paydowns in commercial, contributed to the decline in balances.

Outstanding commercial loan balances decreased by $393 million or 3 percent compared to September 30, 2019. Services loan balances decreased $144 million. Energy loan balances decreased $141 million. Wholesale/retail sector loans decreased $88 million. Public finance loans decreased by $35 million and manufacturing loans decreased $33 million while other commercial and industrial loans increased $47 million.

Commercial real estate loan balances decreased $192 million or 4 percent compared to September 30, 2019. Loans secured by office buildings decreased $86 million. Loans secured by multifamily residential properties decreased $59 million. Loans secured by retail properties decreased $24 million and loans secured by other commercial real estate properties decreased $22 million.

Deposits

Period-end deposits totaled $27.6 billion at December 31, 2019, a $1.5 billion increase over September 30, 2019. A focus on deposit growth throughout the year led to the execution of several specific initiatives that resulted in large deposit acquisitions during the fourth quarter. Interest-bearing transaction account balances grew by $1.9 billion and demand deposit balances decreased $383 million. Average deposits were $27.1 billion at December 31, 2019, an increase of $1.4 billion compared to September 30, 2019. Total interest-bearing transaction deposits increased $1.6 billion, partially offset by a decrease in demand deposits of $147 million.

Capital

The company's common equity Tier 1 capital ratio was 11.39 percent at December 31, 2019. In addition, the company's Tier 1 capital ratio was 11.39 percent, total capital ratio was 12.94 percent, and leverage ratio was 8.40 percent at December 31, 2019. At September 30, 2019, the company's common equity Tier 1 capital ratio was 11.06 percent, Tier 1 capital ratio was 11.06 percent, total capital ratio was 12.56 percent, and leverage ratio was 8.41 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.98 percent at December 31, 2019 and 8.72 percent at September 30, 2019. 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.

The company repurchased 280,000 shares at an average price of $81.59 per share in the fourth quarter of 2019 and 336,713 shares at an average price of $77.03 in the third quarter of 2019.



Credit Quality

Nonperforming assets totaled $294 million or 1.35 percent of outstanding loans and repossessed assets at December 31, 2019, compared to $286 million or 1.28 percent at September 30, 2019. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $195 million or 0.90 percent of outstanding loans and repossessed assets at December 31, 2019, compared to $187 million or 0.85 percent at September 30, 2019.

Nonaccruing loans were $181 million or 0.83 percent of outstanding loans at December 31, 2019. Nonaccruing commercial loans totaled $115 million or 0.82 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $28 million or 0.62 percent of outstanding commercial real estate loans. Nonaccruing residential mortgage loans totaled $38 million or 1.81 percent of outstanding residential mortgage loans.

Nonaccruing loans increased $8.5 million from September 30, 2019, primarily due to a $6.6 million multifamily community development credit. Nonaccruing energy loans also increased $2.8 million. New nonaccruing loans identified in the fourth quarter totaled $49 million, offset by $24 million in payments received and $14 million in charge-offs.

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, totaled $160 million at December 31, compared to $143 million at September 30. The increase largely resulted from energy loans, partially offset by a decrease in loans secured by commercial real estate.

Net charge-offs were $12.5 million or 0.22 percent of average loans on an annualized basis for the fourth quarter of 2019, compared to $10.6 million or 0.19 percent of average loans on an annualized basis for the third quarter of 2019. Net charge-offs were 0.21 percent of average loans over the last four quarters. Gross charge-offs were $14.3 million for the fourth quarter compared to $11.7 million for the previous quarter. Recoveries totaled $1.8 million for the fourth quarter of 2019 and $1.1 million for the third quarter of 2019.

Based on an evaluation of all credit factors, including specific impairment of two shared national credit energy loans where the Company is not the lead agent, changes in nonaccruing and potential problem loans and net charge-offs, the company determined that a $19.0 million provision for credit losses was appropriate for the fourth quarter of 2019. The company recorded a $12.0 million provision for credit losses in the third quarter of 2019.

The combined allowance for credit losses totaled $212 million or 0.98 percent of outstanding loans and 121 percent of nonaccruing loans at December 31, 2019, excluding residential mortgage loans guaranteed by U.S. government agencies. Excluding loans acquired in the CoBiz acquisition, which are measured at acquisition-date fair value, the combined allowance for loan losses was 1.06 percent of outstanding loans and 127 percent of nonaccruing loans at December 31, 2019 compared to 1.02 percent of outstanding loans and 130 percent of nonaccruing loans at September 30, 2019. The allowance for loan losses was $211 million and the accrual for off-balance sheet credit losses was $1.6 million. At September 30, 2019, the combined allowance for credit losses was $206 million or 0.92 percent of outstanding loans and 124 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The allowance for loan losses was $204 million and the accrual for off-balance sheet credit losses was $1.4 million.



Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $11.3 billion at December 31, 2019, a $245 million increase compared to September 30, 2019. At December 31, 2019, the available for sale securities portfolio consisted primarily of $8.0 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.2 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At December 31, 2019, the available for sale securities portfolio had a net unrealized gain of $138 million compared to $178 million at September 30, 2019.

The company also maintains a portfolio of 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. This portfolio of fair value option securities decreased $718 million to $1.1 billion at December 31, 2019.

The net economic cost of the changes in fair value of mortgage servicing rights and related economic hedges was $2.2 million during the fourth quarter of 2019, including a $13.0 million decrease in the fair value of securities and derivative contracts held as an economic hedge, a $9.3 million increase in the fair value of mortgage servicing rights, and $1.5 million of related net interest revenue.



Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, January 22, 2020 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 1-412-317-6671 and referencing conference ID # 13697774.



About BOK Financial Corporation

BOK Financial Corporation is a $42 billion regional financial services company headquartered in Tulsa, Oklahoma with $83 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., BOK Financial Private Wealth, Inc. and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance 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, 2019 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, including its latest acquisition of CoBiz Financial, Inc., 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 and interest rate relationships, inflation, 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, 2019			Sept. 30, 2019
ASSETS
Cash and due from banks	$	735,836		$	761,130
Interest-bearing cash and cash equivalents	522,985			465,458
Trading securities	1,623,921			1,675,212
Investment securities	293,418			304,224
Available for sale securities	11,269,643			11,024,551
Fair value option securities	1,098,577			1,816,398
Restricted equity securities	460,552			479,018
Residential mortgage loans held for sale	182,271			282,487
Loans:
Commercial	14,031,650			14,424,625
Commercial real estate	4,433,783			4,626,057
Residential mortgage	2,084,172			2,117,303
Personal	1,201,382			1,117,382
Total loans	21,750,987			22,285,367
Allowance for loan losses	(210,759		)	(204,432		)
Loans, net of allowance	21,540,228			22,080,935
Premises and equipment, net	535,519			516,597
Receivables	231,811			219,420
Goodwill	1,048,091			1,048,091
Intangible assets, net	125,271			124,320
Mortgage servicing rights	201,886			193,661
Real estate and other repossessed assets, net	20,359			21,026
Derivative contracts, net	323,375			352,019
Cash surrender value of bank-owned life insurance	389,879			387,035
Receivable on unsettled securities sales	1,020,404			904,630
Other assets	547,995			470,993
TOTAL ASSETS	$	42,172,021		$	43,127,205

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,461,291		$	9,844,397
Interest-bearing transaction	15,391,752			13,521,545
Savings	550,276			557,593
Time	2,217,849			2,243,541
Total deposits	27,621,168			26,167,076
Funds purchased and repurchase agreements	3,818,350			3,413,051
Other borrowings	4,527,055			6,822,334
Subordinated debentures	275,923			275,909
Accrued interest, taxes and expense	259,701			218,775
Due on unsettled securities purchases	182,547			703,448
Derivative contracts, net	251,128			336,791
Other liabilities	372,230			352,156
TOTAL LIABILITIES	37,308,102			38,289,540
Shareholders' equity:
Capital, surplus and retained earnings	4,750,872			4,695,263
Accumulated other comprehensive gain	104,923			133,753
TOTAL SHAREHOLDERS' EQUITY	4,855,795			4,829,016
Non-controlling interests	8,124			8,649
TOTAL EQUITY	4,863,919			4,837,665
TOTAL LIABILITIES AND EQUITY	$	42,172,021		$	43,127,205

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

	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018
ASSETS
Interest-bearing cash and cash equivalents	$	573,203		$	500,823		$	535,491		$	537,903		$	563,132
Trading securities	1,672,426			1,696,568			1,757,335			1,968,399			1,929,601
Investment securities	298,567			308,090			328,482			343,282			364,737
Available for sale securities	11,333,524			10,747,439			9,435,668			8,883,054			8,704,963
Fair value option securities	1,521,528			1,553,879			898,772			594,349			277,575
Restricted equity securities	479,687			476,781			413,812			395,432			362,729
Residential mortgage loans held for sale	203,535			203,319			192,102			145,040			179,553
Loans:
Commercial	14,344,534			14,507,185			14,175,057			13,966,521			13,587,344
Commercial real estate	4,532,649			4,652,534			4,656,861			4,602,149			4,747,784
Residential mortgage	2,130,646			2,129,421			2,146,315			2,193,334			2,222,063
Personal	1,228,171			1,123,778			1,026,172			1,004,061			1,022,140
Total loans	22,236,000			22,412,918			22,004,405			21,766,065			21,579,331
Allowance for loan losses	(205,417		)	(201,714		)	(205,532		)	(206,092		)	(209,613		)
Total loans, net	22,030,583			22,211,204			21,798,873			21,559,973			21,369,718
Total earning assets	38,113,053			37,698,103			35,360,535			34,427,432			33,752,008
Cash and due from banks	690,806			717,338			703,294			705,411			731,700
Derivative contracts, net	311,542			331,834			328,802			262,927			299,319
Cash surrender value of bank-owned life insurance	388,012			385,190			384,974			382,538			379,893
Receivable on unsettled securities sales	1,973,604			1,742,794			1,437,462			1,224,700			799,548
Other assets	2,736,337			2,705,089			2,629,710			2,669,673			2,423,275
TOTAL ASSETS	$	44,213,354		$	43,580,348		$	40,844,777		$	39,672,681		$	38,385,743

LIABILITIES AND EQUITY
Deposits:
Demand	$	9,612,533		$	9,759,710		$	9,883,965		$	9,988,088		$	10,648,683
Interest-bearing transaction	14,685,385			13,131,542			12,512,282			11,931,539			11,773,651
Savings	554,605			557,122			558,738			541,575			526,275
Time	2,247,717			2,251,800			2,207,391			2,153,277			2,146,786
Total deposits	27,100,240			25,700,174			25,162,376			24,614,479			25,095,395
Funds purchased and repurchase agreements	4,120,610			3,106,163			2,066,950			2,033,036			1,205,568
Other borrowings	6,247,194			8,125,023			7,175,617			7,040,279			6,361,141
Subordinated debentures	275,916			275,900			275,887			275,882			276,378
Derivative contracts, net	276,078			300,051			283,484			273,786			268,848
Due on unsettled securities purchases	784,174			745,893			821,688			453,937			493,887
Other liabilities	561,654			547,144			460,732			501,788			341,438
TOTAL LIABILITIES	39,365,866			38,800,348			36,246,734			35,193,187			34,042,655
Total equity	4,847,488			4,780,000			4,598,043			4,479,494			4,343,088
TOTAL LIABILITIES AND EQUITY	$	44,213,354		$	43,580,348		$	40,844,777		$	39,672,681		$	38,385,743

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018

Interest revenue	$	369,857		$	365,592		$	1,531,958		$	1,228,426
Interest expense	99,608			79,906			419,079			243,559
Net interest revenue	270,249			285,686			1,112,879			984,867
Provision for credit losses	19,000			9,000			44,000			8,000
Net interest revenue after provision for credit losses	251,249			276,686			1,068,879			976,867
Other operating revenue:
Brokerage and trading revenue	43,843			28,101			159,826			108,323
Transaction card revenue	22,548			20,664			87,216			84,025
Fiduciary and asset management revenue	45,021			43,665			177,025			184,703
Deposit service charges and fees	27,331			29,393			112,485			112,153
Mortgage banking revenue	25,396			21,880			107,541			97,787
Other revenue	15,283			16,404			58,108			56,185
Total fees and commissions	179,422			160,107			702,201			643,176
Other gains (losses), net	(1,649		)	(8,305		)	9,351			(2,265		)
Gain (loss) on derivatives, net	(4,644		)	11,167			14,951			(422		)
Gain (loss) on fair value option securities, net	(8,328		)	(282		)	15,787			(25,572		)
Change in fair value of mortgage servicing rights	9,297			(24,233		)	(53,517		)	4,668
Gain (loss) on available for sale securities, net	4,487			(1,999		)	5,597			(2,801		)
Total other operating revenue	178,585			136,455			694,370			616,784
Other operating expense:
Personnel	168,422			160,706			660,565			583,131
Business promotion	8,787			9,207			35,662			30,523
Charitable contributions to BOKF Foundation	2,000			2,846			3,000			2,846
Professional fees and services	13,408			20,712			54,861			59,099
Net occupancy and equipment	26,316			27,780			110,275			97,981
Insurance	5,393			4,248			20,906			23,318
Data processing and communications	31,884			27,575			124,983			114,796
Printing, postage and supplies	3,700			5,232			16,517			17,169
Net losses and operating expenses of repossessed assets	2,403			2,581			6,707			17,052
Amortization of intangible assets	5,225			5,331			20,618			9,620
Mortgage banking costs	14,259			11,518			50,685			46,298
Other expense	6,998			6,907			27,602			26,333
Total other operating expense	288,795			284,643			1,132,381			1,028,166

Net income before taxes	141,039			128,498			630,868			565,485
Federal and state income taxes	30,257			20,121			130,183			119,061

Net income	110,782			108,377			500,685			446,424
Net income (loss) attributable to non-controlling interests	430			(79		)	(73		)	778
Net income attributable to BOK Financial Corporation shareholders	$	110,352		$	108,456		$	500,758		$	445,646

Average shares outstanding:
Basic	70,295,899			71,808,029			70,787,700			66,628,640
Diluted	70,309,644			71,833,334			70,802,612			66,662,273

Net income per share:
Basic	$	1.56		$	1.50		$	7.03		$	6.63
Diluted	$	1.56		$	1.50		$	7.03		$	6.63

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

	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Capital:
Period-end shareholders' equity	$	4,855,795		$	4,829,016		$	4,709,438		$	4,522,873		$	4,432,109
Risk weighted assets	$	31,671,519		$	32,159,139		$	32,040,741		$	31,601,558		$	30,742,295
Risk-based capital ratios:
Common equity tier 1	11.39		%	11.06		%	10.84		%	10.71		%	10.92		%
Tier 1	11.39		%	11.06		%	10.84		%	10.71		%	10.92		%
Total capital	12.94		%	12.56		%	12.34		%	12.24		%	12.50		%
Leverage ratio	8.40		%	8.41		%	8.75		%	8.76		%	8.96		%
Tangible common equity ratio¹	8.98		%	8.72		%	8.69		%	8.64		%	8.82		%

Common stock:
Book value per share	$	68.80		$	68.15		$	66.15		$	63.30		$	61.45
Tangible book value per share	52.17			51.60			49.68			46.82			45.03
Market value per share:
High	$	88.28		$	84.35		$	88.17		$	93.72		$	98.29
Low	$	71.85		$	72.96		$	72.60		$	72.11		$	69.96
Cash dividends paid	$	36,011		$	35,472		$	35,631		$	35,885		$	35,977
Dividend payout ratio	32.63		%	24.94		%	25.90		%	32.44		%	33.17		%
Shares outstanding, net	70,579,598			70,858,010			71,193,770			71,449,982			72,122,932
Stock buy-back program:
Shares repurchased	280,000			336,713			250,000			705,609			525,000
Amount	$	22,844		$	25,937		$	20,125		$	60,577		$	45,057
Average price per share	$	81.59		$	77.03		$	80.50		$	85.85		$	85.82

Performance ratios (quarter annualized):
Return on average assets	0.99		%	1.29		%	1.35		%	1.13		%	1.12		%
Return on average equity	9.05		%	11.83		%	12.02		%	10.04		%	9.93		%
Net interest margin	2.88		%	3.01		%	3.30		%	3.30		%	3.40		%
Efficiency ratio	63.65		%	59.31		%	59.51		%	64.80		%	63.25		%

Reconciliation of non-GAAP measures:
¹ Tangible common equity ratio:
Total shareholders' equity	$	4,855,795		$	4,829,016		$	4,709,438		$	4,522,873		$	4,432,109
Less: Goodwill and intangible assets, net	1,173,362			1,172,411			1,172,564			1,177,573			1,184,112
Tangible common equity	$	3,682,433		$	3,656,605		$	3,536,874		$	3,345,300		$	3,247,997

Total assets	$	42,172,021		$	43,127,205		$	41,893,073		$	39,882,962		$	38,020,504
Less: Goodwill and intangible assets, net	1,173,362			1,172,411			1,172,564			1,177,573			1,184,112
Tangible assets	$	40,998,659		$	41,954,794		$	40,720,509		$	38,705,389		$	36,836,392

Tangible common equity ratio	8.98		%	8.72		%	8.69		%	8.64		%	8.82		%

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

	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018
Other data:
Tax equivalent interest	$	2,726		$	2,936		$	3,481		$	2,529		$	3,067
Net unrealized gain (loss) on available for sale securities	$	138,149		$	178,060		$	131,780		$	(2,609	)	$	(95,271	)

Mortgage banking:
Mortgage production revenue	$	9,169		$	13,814		$	11,869		$	7,868		$	5,073

Mortgage loans funded for sale	$	855,643		$	877,280		$	729,841		$	510,527		$	497,353
Add: current period-end outstanding commitments	158,460			379,377			344,087			263,434			160,848
Less: prior period end outstanding commitments	379,377			344,087			263,434			160,848			197,752
Total mortgage production volume	$	634,726		$	912,570		$	810,494		$	613,113		$	460,449

Mortgage loan refinances to mortgage loans funded for sale	57		%	56		%	31		%	30		%	23		%
Gain on sale margin	1.44		%	1.51		%	1.46		%	1.28		%	1.10		%

Mortgage servicing revenue	$	16,227		$	16,366		$	16,262		$	15,966		$	16,807
Average outstanding principal balance of mortgage loans serviced for others	20,856,446			21,172,874			21,418,690			21,581,835			21,706,541
Average mortgage servicing revenue rates	0.31		%	0.31		%	0.30		%	0.30		%	0.31		%

Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(4,714	)	$	3,742		$	11,128		$	4,432		$	12,162
Gain (loss) on fair value option securities, net	(8,328		)	4,597			9,853			9,665			(282		)
Gain (loss) on economic hedge of mortgage servicing rights	(13,042		)	8,339			20,981			14,097			11,880
Gain (loss) on changes in fair value of mortgage servicing rights	9,297			(12,593		)	(29,555		)	(20,666		)	(24,233		)
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(3,745		)	(4,254		)	(8,574		)	(6,569		)	(12,353		)
Net interest revenue on fair value option securities²	1,544			1,245			1,296			1,129			695
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(2,201	)	$	(3,009	)	$	(7,278	)	$	(5,440	)	$	(11,658	)


²	Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

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

	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018

Interest revenue	$	369,857		$	395,207		$	390,820		$	376,074		$	365,592
Interest expense	99,608			116,111			105,388			97,972			79,906
Net interest revenue	270,249			279,096			285,432			278,102			285,686
Provision for credit losses	19,000			12,000			5,000			8,000			9,000
Net interest revenue after provision for credit losses	251,249			267,096			280,432			270,102			276,686
Other operating revenue:
Brokerage and trading revenue	43,843			43,840			40,526			31,617			28,101
Transaction card revenue	22,548			22,015			21,915			20,738			20,664
Fiduciary and asset management revenue	45,021			43,621			45,025			43,358			43,665
Deposit service charges and fees	27,331			28,837			28,074			28,243			29,393
Mortgage banking revenue	25,396			30,180			28,131			23,834			21,880
Other revenue	15,283			17,626			12,437			12,762			16,404
Total fees and commissions	179,422			186,119			176,108			160,552			160,107
Other gains (losses), net	(1,649		)	4,544			3,480			2,976			(8,305		)
Gain (loss) on derivatives, net	(4,644		)	3,778			11,150			4,667			11,167
Gain (loss) on fair value option securities, net	(8,328		)	4,597			9,853			9,665			(282		)
Change in fair value of mortgage servicing rights	9,297			(12,593		)	(29,555		)	(20,666		)	(24,233		)
Gain (loss) on available for sale securities, net	4,487			5			1,029			76			(1,999		)
Total other operating revenue	178,585			186,450			172,065			157,270			136,455
Other operating expense:
Personnel	168,422			162,573			160,342			169,228			160,706
Business promotion	8,787			8,859			10,142			7,874			9,207
Charitable contributions to BOKF Foundation	2,000			—			1,000			—			2,846
Professional fees and services	13,408			12,312			13,002			16,139			20,712
Net occupancy and equipment	26,316			27,558			26,880			29,521			27,780
Insurance	5,393			4,220			6,454			4,839			4,248
Data processing and communications	31,884			31,915			29,735			31,449			27,575
Printing, postage and supplies	3,700			3,825			4,107			4,885			5,232
Net losses and operating expenses of repossessed assets	2,403			1,728			580			1,996			2,581
Amortization of intangible assets	5,225			5,064			5,138			5,191			5,331
Mortgage banking costs	14,259			14,975			11,545			9,906			11,518
Other expense	6,998			6,263			8,212			6,129			6,907
Total other operating expense	288,795			279,292			277,137			287,157			284,643
Net income before taxes	141,039			174,254			175,360			140,215			128,498
Federal and state income taxes	30,257			32,396			37,580			29,950			20,121
Net income	110,782			141,858			137,780			110,265			108,377
Net income (loss) attributable to non-controlling interests	430			(373		)	217			(347		)	(79		)
Net income attributable to BOK Financial Corporation shareholders	$	110,352		$	142,231		$	137,563		$	110,612		$	108,456

Average shares outstanding:
Basic	70,295,899			70,596,307			70,887,063			71,387,070			71,808,029
Diluted	70,309,644			70,609,924			70,902,033			71,404,388			71,833,334
Net income per share:
Basic	$	1.56		$	2.00		$	1.93		$	1.54		$	1.50
Diluted	$	1.56		$	2.00		$	1.93		$	1.54		$	1.50

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

	Dec. 31, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018
Commercial:
Energy	$	3,973,377	$	4,114,269	$	3,921,353	$	3,705,099	$	3,590,333
Services	3,122,163		3,266,249		3,309,458		3,287,563		3,258,192
Healthcare	3,033,916		3,032,968		2,926,510		2,915,885		2,799,277
Wholesale/retail	1,760,866		1,848,617		1,793,118		1,706,900		1,621,158
Public finance	709,868		744,840		795,659		803,083		804,550
Manufacturing	665,449		698,408		761,357		742,374		730,521
Other commercial and industrial	766,011		719,274		829,453		801,071		832,047
Total commercial	14,031,650		14,424,625		14,336,908		13,961,975		13,636,078

Commercial real estate:
Multifamily	1,265,562		1,324,839		1,300,372		1,210,358		1,288,065
Office	928,379		1,014,275		1,056,306		1,033,158		1,072,920
Industrial	856,117		873,536		828,569		767,757		778,106
Retail	775,521		799,169		825,399		890,685		919,082
Residential construction and land development	150,879		135,361		141,509		149,686		148,584
Other commercial real estate	457,325		478,877		557,878		549,007		558,056
Total commercial real estate	4,433,783		4,626,057		4,710,033		4,600,651		4,764,813

Residential mortgage:
Permanent mortgage	1,057,321		1,066,460		1,088,370		1,098,481		1,122,610
Permanent mortgages guaranteed by U.S. government agencies	197,794		191,764		195,373		193,308		190,866
Home equity	829,057		859,079		887,079		900,831		916,557
Total residential mortgage	2,084,172		2,117,303		2,170,822		2,192,620		2,230,033

Personal	1,201,382		1,117,382		1,037,889		1,003,734		1,025,806

Total	$	21,750,987	$	22,285,367	$	22,255,652	$	21,758,980	$	21,656,730

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

	Dec. 31, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018

Texas:
Commercial	$	6,174,894	$	6,220,227	$	5,877,265	$	5,754,018	$	5,438,133
Commercial real estate	1,259,117		1,292,116		1,341,609		1,344,810		1,341,783
Residential mortgage	268,282		273,931		272,878		265,927		266,805
Personal	458,893		475,430		400,585		396,794		394,743
Total Texas	8,161,186		8,261,704		7,892,337		7,761,549		7,441,464

Oklahoma:
Commercial	3,454,825		3,690,100		3,762,234		3,551,054		3,491,117
Commercial real estate	631,026		679,786		717,970		665,190		700,756
Residential mortgage	1,375,080		1,370,452		1,403,398		1,417,381		1,440,566
Personal	479,784		383,246		382,764		374,807		375,543
Total Oklahoma	5,940,715		6,123,584		6,266,366		6,008,432		6,007,982

Colorado:
Commercial	2,169,598		2,247,798		2,325,742		2,231,703		2,275,069
Commercial real estate	927,826		975,066		1,023,410		957,348		963,575
Residential mortgage	196,326		224,872		241,780		241,722		251,849
Personal	80,613		78,733		72,537		65,812		72,916
Total Colorado	3,374,363		3,526,469		3,663,469		3,496,585		3,563,409

Arizona:
Commercial	1,307,073		1,276,534		1,330,415		1,335,140		1,320,139
Commercial real estate	728,832		771,425		761,243		791,466		889,903
Residential mortgage	89,396		92,121		91,684		98,973		97,959
Personal	97,143		78,694		76,335		61,875		68,546
Total Arizona	2,222,444		2,218,774		2,259,677		2,287,454		2,376,547

Kansas/Missouri:
Commercial	527,872		566,969		602,836		667,859		659,793
Commercial real estate	322,541		374,795		331,443		327,870		343,228
Residential mortgage	66,771		67,035		71,229		75,560		77,971
Personal	64,298		79,487		84,224		81,831		91,441
Total Kansas/Missouri	981,482		1,088,286		1,089,732		1,153,120		1,172,433

New Mexico:
Commercial	305,320		335,409		350,520		342,915		340,489
Commercial real estate	402,148		374,331		385,058		371,416		383,670
Residential mortgage	80,325		81,383		82,390		85,326		87,346
Personal	9,932		10,887		10,236		11,065		10,662
Total New Mexico	797,725		802,010		828,204		810,722		822,167

Arkansas:
Commercial	92,068		87,588		87,896		79,286		111,338
Commercial real estate	162,293		158,538		149,300		142,551		141,898
Residential mortgage	7,992		7,509		7,463		7,731		7,537
Personal	10,719		10,905		11,208		11,550		11,955
Total Arkansas	273,072		264,540		255,867		241,118		272,728

TOTAL BOK FINANCIAL	$	21,750,987	$	22,285,367	$	22,255,652	$	21,758,980	$	21,656,730

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, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018
Oklahoma:
Demand	$	3,257,337	$	3,515,312	$	3,279,359	$	3,432,239	$	3,610,593
Interest-bearing:
Transaction	8,574,912		7,447,799		7,020,484		6,542,548		6,445,831
Savings	306,194		308,103		307,785		309,875		288,210
Time	1,125,446		1,198,170		1,253,804		1,217,371		1,118,643
Total interest-bearing	10,006,552		8,954,072		8,582,073		8,069,794		7,852,684
Total Oklahoma	13,263,889		12,469,384		11,861,432		11,502,033		11,463,277

Texas:
Demand	2,766,379		2,870,429		2,974,005		2,966,743		3,291,433
Interest-bearing:
Transaction	2,912,302		2,589,511		2,453,619		2,385,305		2,295,169
Savings	102,456		100,597		103,125		101,849		99,624
Time	495,343		464,264		425,253		419,269		423,880
Total interest-bearing	3,510,101		3,154,372		2,981,997		2,906,423		2,818,673
Total Texas	6,276,480		6,024,801		5,956,002		5,873,166		6,110,106

Colorado:
Demand	1,729,674		1,694,044		1,621,820		1,897,547		1,658,473
Interest-bearing:
Transaction	1,769,037		1,910,874		1,800,271		1,844,632		1,899,203
Savings	53,307		60,107		57,263		58,919		57,289
Time	283,517		273,622		246,198		261,235		274,877
Total interest-bearing	2,105,861		2,244,603		2,103,732		2,164,786		2,231,369
Total Colorado	3,835,535		3,938,647		3,725,552		4,062,333		3,889,842

New Mexico:
Demand	623,722		645,698		630,861		662,362		691,692
Interest-bearing:
Transaction	558,493		539,260		557,881		573,203		571,347
Savings	63,999		62,863		62,636		61,497		58,194
Time	238,140		236,135		232,569		228,212		224,515
Total interest-bearing	860,632		838,258		853,086		862,912		854,056
Total New Mexico	1,484,354		1,483,956		1,483,947		1,525,274		1,545,748

Arizona:
Demand	672,265		703,381		700,480		695,238		707,402
Interest-bearing:
Transaction	684,358		599,655		560,429		621,735		575,567
Savings	10,314		12,487		11,966		12,144		10,545
Time	49,676		44,347		43,099		44,004		43,051
Total interest-bearing	744,348		656,489		615,494		677,883		629,163
Total Arizona	1,416,613		1,359,870		1,315,974		1,373,121		1,336,565

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

	Dec. 31, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018
Kansas/Missouri:
Demand	384,533		376,020		431,856		410,799		418,199
Interest-bearing:
Transaction	784,574		284,940		310,774		361,590		327,866
Savings	12,169		11,689		13,125		13,815		13,721
Time	17,877		19,126		19,205		19,977		19,688
Total interest-bearing	814,620		315,755		343,104		395,382		361,275
Total Kansas/Missouri	1,199,153		691,775		774,960		806,181		779,474

Arkansas:
Demand	27,381		39,513		29,176		31,624		36,800
Interest-bearing:
Transaction	108,076		149,506		148,485		147,964		91,593
Savings	1,837		1,747		1,783		1,785		1,632
Time	7,850		7,877		7,810		8,321		8,726
Total interest-bearing	117,763		159,130		158,078		158,070		101,951
Total Arkansas	145,144		198,643		187,254		189,694		138,751

TOTAL BOK FINANCIAL	$	27,621,168	$	26,167,076	$	25,305,121	$	25,331,802	$	25,263,763

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION

	Three Months Ended
	Dec. 31, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018

TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	1.62	%	2.42	%	2.57	%	2.56	%	2.23	%
Trading securities	3.19	%	3.49	%	3.59	%	3.88	%	4.10	%
Investment securities	4.69	%	4.46	%	4.41	%	4.50	%	4.26	%
Available for sale securities	2.52	%	2.60	%	2.63	%	2.57	%	2.51	%
Fair value option securities	2.62	%	2.79	%	3.34	%	3.62	%	3.56	%
Restricted equity securities	5.37	%	6.34	%	6.30	%	6.42	%	6.39	%
Residential mortgage loans held for sale	3.55	%	3.73	%	3.65	%	4.58	%	4.00	%
Loans	4.75	%	5.12	%	5.39	%	5.26	%	5.09	%
Allowance for loan losses
Loans, net of allowance	4.80	%	5.17	%	5.45	%	5.31	%	5.14	%
Total tax-equivalent yield on earning assets	3.93	%	4.25	%	4.51	%	4.46	%	4.33	%

COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	1.00	%	1.08	%	1.04	%	0.94	%	0.79	%
Savings	0.11	%	0.14	%	0.12	%	0.12	%	0.11	%
Time	1.94	%	1.94	%	1.90	%	1.80	%	1.54	%
Total interest-bearing deposits	1.09	%	1.17	%	1.13	%	1.04	%	0.87	%
Funds purchased and repurchase agreements	1.56	%	2.01	%	2.08	%	2.07	%	1.36	%
Other borrowings	2.01	%	2.42	%	2.67	%	2.68	%	2.51	%
Subordinated debt	5.40	%	5.48	%	5.53	%	5.51	%	5.38	%
Total cost of interest-bearing liabilities	1.40	%	1.68	%	1.70	%	1.66	%	1.42	%
Tax-equivalent net interest revenue spread	2.53	%	2.57	%	2.81	%	2.80	%	2.91	%
Effect of noninterest-bearing funding sources and other	0.35	%	0.44	%	0.49	%	0.50	%	0.49	%
Tax-equivalent net interest margin	2.88	%	3.01	%	3.30	%	3.30	%	3.40	%

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 -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended
	Dec. 31, 2019		Sept. 30, 2019		June 30, 2019		Mar. 31, 2019		Dec. 31, 2018
Nonperforming assets:
Nonaccruing loans:
Commercial	$	115,416	$	111,706	$	123,395	$	90,358	$	99,841
Commercial real estate	27,626		23,185		21,670		21,508		21,621
Residential mortgage	37,622		37,304		38,477		40,409		41,555
Personal	287		271		237		302		230
Total nonaccruing loans	180,951		172,466		183,779		152,577		163,247
Accruing renegotiated loans guaranteed by U.S. government agencies	92,452		92,718		95,989		91,787		86,428
Real estate and other repossessed assets	20,359		21,026		16,940		17,139		17,487
Total nonperforming assets	$	293,762	$	286,210	$	296,708	$	261,503	$	267,162
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	195,210	$	187,160	$	193,976	$	162,770	$	173,602

Nonaccruing loans by loan class:
Commercial:
Energy	$	91,722	$	88,894	$	71,632	$	35,332	$	47,494
Services	7,483		6,119		10,087		9,555		8,567
Healthcare	4,480		5,978		16,148		18,768		16,538
Manufacturing	10,133		8,741		8,613		9,548		8,919
Wholesale/retail	1,163		1,504		1,390		1,425		1,316
Public finance	—		—		—		—		—
Other commercial and industrial	435		470		15,525		15,730		17,007
Total commercial	115,416		111,706		123,395		90,358		99,841
Commercial real estate:
Retail	18,868		20,132		20,057		20,159		20,279
Residential construction and land development	350		350		350		350		350
Multifamily	6,858		286		275		—		301
Office	—		855		855		855		—
Industrial	909		909		—		—		—
Other commercial real estate	641		653		133		144		691
Total commercial real estate	27,626		23,185		21,670		21,508		21,621
Residential mortgage:
Permanent mortgage	20,441		20,165		21,803		22,937		23,951
Permanent mortgage guaranteed by U.S. government agencies	6,100		6,332		6,743		6,946		7,132
Home equity	11,081		10,807		9,931		10,526		10,472
Total residential mortgage	37,622		37,304		38,477		40,409		41,555
Personal	287		271		237		302		230
Total nonaccruing loans	$	180,951	$	172,466	$	183,779	$	152,577	$	163,247

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

	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018

Performing loans 90 days past due¹	$	7,680		$	1,541		$	2,698		$	610		$	1,338

Gross charge-offs	$	14,268		$	11,707		$	13,227		$	11,775		$	14,515
Recoveries	(1,816		)	(1,066		)	(5,503		)	(1,689		)	(2,168		)
Net charge-offs	$	12,452		$	10,641		$	7,724		$	10,086		$	12,347

Provision for credit losses	$	19,000		$	12,000		$	5,000		$	8,000		$	9,000

Allowance for loan losses to period end loans	0.97		%	0.92		%	0.91		%	0.94		%	0.96		%
Combined allowance for credit losses to period end loans	0.98		%	0.92		%	0.92		%	0.95		%	0.97		%
Nonperforming assets to period end loans and repossessed assets	1.35		%	1.28		%	1.33		%	1.20		%	1.23		%
Net charge-offs (annualized) to average loans	0.22		%	0.19		%	0.14		%	0.19		%	0.23		%
Allowance for loan losses to nonaccruing loans¹	120.54		%	123.05		%	114.40		%	141.00		%	132.89		%
Combined allowance for credit losses to nonaccruing loans¹	121.44		%	123.87		%	115.48		%	142.25		%	134.03		%


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

SEGMENTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)

	Three Months Ended							Change
Commercial Banking	Dec. 31, 2019		Sept. 30, 2019		Dec. 31, 2018		¹	4Q19 vs 3Q19		4Q19 vs 4Q18
Net interest revenue	$	162,232	$	178,955	$	147,314		(9.3	)%	10.1	%
Fees and commissions revenue	43,357		46,159		39,667			(6.1	)%	9.3	%
Other operating expense	68,900		68,697		51,663			0.3	%	33.4	%
Corporate expense allocations	11,942		12,613		9,112			(5.3	)%	31.1	%
Net income	81,732		100,675		83,783			(18.8	)%	(2.4	)%

Average assets	24,345,447		23,973,067		19,341,921			1.6	%	25.9	%
Average loans	19,100,101		19,226,347		15,628,731			(0.7	)%	22.2	%
Average deposits	11,419,558		10,833,057		8,393,016			5.4	%	36.1	%

Consumer Banking
Net interest revenue	$	43,176	$	48,462	$	41,364		(10.9	)%	4.4	%
Fees and commissions revenue	44,884		51,460		42,840			(12.8	)%	4.8	%
Other operating expense	59,702		59,699		56,346			—	%	6.0	%
Corporate expense allocations	11,798		11,776		11,114			0.2	%	6.2	%
Net income	8,287		16,640		2,531			(50.2	)%	227.4	%

Average assets	9,772,710		9,827,130		8,071,978			(0.6	)%	21.1	%
Average loans	1,730,467		1,773,831		1,745,642			(2.4	)%	(0.9	)%
Average deposits	6,974,453		6,983,018		6,542,188			(0.1	)%	6.6	%

Wealth Management
Net interest revenue	$	21,826	$	23,066	$	28,949		(5.4	)%	(24.6	)%
Fees and commissions revenue	92,729		89,422		72,452			3.7	%	28.0	%
Other operating expense	74,688		71,620		66,658			4.3	%	12.0	%
Corporate expense allocations	9,296		9,416		11,256			(1.3	)%	(17.4	)%
Net income	22,863		23,205		17,447			(1.5	)%	31.0	%

Average assets	11,225,213		10,391,225		8,694,289			8.0	%	29.1	%
Average loans	1,667,278		1,671,102		1,448,805			(0.2	)%	15.1	%
Average deposits	7,301,391		6,590,332		5,483,455			10.8	%	33.2	%
Fiduciary assets	52,352,135		49,259,697		44,841,339			6.3	%	16.7	%
Assets under management or administration	82,740,961		80,796,949		76,279,777			2.4	%	8.5	%

¹Acquired assets and liabilities were allocated to segments in the second quarter of 2019.

BOK FINANCIAL CORP - FORM 8-K - EX-99 - EXHIBIT 99 - January 22, 2020

Attached files