EX-99.1 2 a20230630bokfex99.htm EX-99.1 Document


Exhibit 99.1(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $151 million or $2.27 Per Share in the Second Quarter
CEO Commentary
Stacy Kymes, president and chief executive officer, stated, “I am proud of the exceptional second quarter financial results delivered across the board by our team. Wealth segment revenues set another record this quarter, and core loans reached an all-time high led by the commercial and industrial segments. Our growth efforts are supported by the vitality of our geographic footprint as well as our diverse business model—non-interest revenues were almost 40 percent of total revenues for the quarter.

"Using our capital and liquidity strength, we are taking advantage of market and economic uncertainty to prudently grow. Our full-service banking market expansion into San Antonio and the addition of a fixed-income sales and trading office in Memphis are just two more examples of how we are investing to build long-term shareholder value. That disciplined, long-view approach has consistently been a distinct advantage for BOK Financial."
Second Quarter 2023 Financial Highlights
(Unless indicated otherwise, all comparisons are to the prior quarter)
•Net income was $151.3 million or $2.27 per diluted share for the second quarter of 2023 compared to $162.4 million or $2.43 per diluted share for the first quarter of 2023.

•Net interest revenue totaled $322.3 million, a decrease of $30.1 million compared to the prior quarter. Net interest margin was 3.00 percent compared to 3.45 percent. Growth in low-spread trading assets drove a 9 basis point decline in net interest margin with deposit repricing activity primarily driving the remaining 36 basis point reduction.
•Fees and commissions revenue was $200.5 million, an increase of $14.5 million. Brokerage and trading revenue grew $12.6 million, driven largely by higher U.S. government agency mortgage-backed securities and related derivative contracts trading volumes.
•The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to $10.5 million for the first quarter of 2023.
•Operating expense increased $12.9 million to $318.7 million. Personnel expense increased $8.5 million. Growth in regular compensation related to our annual merit increases and higher cash-based incentive compensation reflecting sales activity was partially offset by lower seasonal employee benefits costs. Non-personnel expense increased $4.4 million, led by higher mortgage banking costs.
•Period-end loans grew by $488 million to $23.2 billion at June 30, 2023, primarily driven by growth in commercial loans and commercial real estate loans secured by multifamily residential properties. Average outstanding loan balances were $22.9 billion, a $413 million increase.
•We recorded a $17.0 million provision for expected credit losses in the second quarter of 2023, primarily related to higher assumed commercial real estate vacancy rates during the forecast period and overall loan portfolio growth during the quarter. We recorded a $16.0 million provision for expected credit losses in the first quarter of 2023 as key economic assumptions in the base case, including projected West Texas Intermediate ("WTI") oil prices and projected commercial real estate vacancy rates, were less favorable to economic growth. The combined allowance for credit losses totaled $323 million or 1.39 percent of outstanding loans at June 30, 2023. The combined allowance for credit losses was $312 million or 1.37 percent of outstanding loans at March 31, 2023. Net charge-offs were $6.7 million or 0.12 percent of average loans on an annualized basis in the second quarter
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compared to net charge-offs of $769 thousand or 0.01 percent of average loans on an annualized basis in the first quarter.
•Period-end deposits increased $714 million to $33.3 billion while average deposits decreased $1.1 billion to $32.4 billion. Average demand deposits declined by $1.4 billion and average interest-bearing deposits increased $295 million. The loan to deposit ratio was 70 percent at June 30, 2023, consistent with March 31, 2023.
•The company's tangible common equity ratio, a non-GAAP measure, was 7.79 percent at June 30, 2023 and 8.46 percent at March 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.49 percent.
•The company's common equity Tier 1 capital ratio was 12.13 percent at June 30, 2023. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent at June 30, 2023. At March 31, 2023, the company's common equity Tier 1 capital ratio was 12.19 percent, Tier 1 capital ratio was 12.20 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.94 percent.
•The company repurchased 266,000 shares of common stock at an average price paid of $84.08 a share in the second quarter of 2023.
Second Quarter 2023 Segment Highlights
•Commercial Banking contributed $170.2 million to net income in the second quarter of 2023, a decrease of $7.1 million compared to the first quarter of 2023. Combined net interest revenue and fee revenue decreased $3.2 million due to a decline in demand deposit balances, partially offset by increased customer hedging revenue, primarily related to our energy customers. Net loans charged-off increased $5.9 million to $6.0 million in the second quarter of 2023. Personnel expense increased $3.3 million, driven primarily by incentive compensation costs. The second quarter of 2023 included a gain on alternative investments of $8.1 million resulting from merchant banking activities. Average loans increased $409 million or 2 percent to $19.2 billion. Average deposits decreased $1.0 billion or 7 percent to $14.8 billion.
•Consumer Banking contributed $60.3 million to net income in the second quarter of 2023, an increase of $9.6 million over the prior quarter. The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to $10.5 million for the first quarter of 2023. Combined net interest revenue and fee revenue increased $5.8 million, largely due to an increase in the spread on deposits, partially offset by a decline in deposit balances. Operating expense increased $2.1 million. Increases in mortgage banking costs of $2.5 million driven by higher seasonal prepayments and personnel expense of $1.1 million were partially offset by a decline in business promotion expense. Average loans increased $15 million or 1 percent to $1.8 billion. Average deposits decreased $262 million or 3 percent to $8.0 billion.

•Wealth Management contributed $57.3 million to net income in the second quarter of 2023, an increase of $4.9 million over the first quarter of 2023. Combined net interest and fee revenue increased $9.4 million, primarily due to an increase of $5.1 million in total revenue from institutional trading activities from higher U.S. agency residential mortgage-backed securities trading volumes and increases in other revenue and fiduciary and asset management revenue. These increases were partially offset by a decrease in the spread on deposits. Personnel expense increased $2.7 million due to increased cash-based incentive compensation, driven by higher trading activities, combined with higher regular compensation related to annual merit increases. Average loans increased $29 million or 1 percent to $2.2 billion. Average deposits increased $112 million or 2 percent to $7.5 billion. Assets under management or administration were $103.6 billion, an increase of $1.3 billion.
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Net Interest Revenue
Net interest revenue was $322.3 million for the second quarter of 2023 compared to $352.3 million for the prior quarter. Net interest margin was 3.00 percent compared to 3.45 percent. Growth in low-spread trading assets drove a 9 basis point decline in net interest margin with deposit repricing activity primarily driving the remaining 36 basis point reduction. Deposit price competition and liability mix shift have driven compression in the net interest margin.
Average earning assets increased $2.0 billion. Average trading securities grew $1.2 billion due to favorable market opportunities. Average loan balances increased $413 million, largely due to growth in commercial and commercial real estate loans. Average available for sale securities increased $295 million. Average interest-bearing cash and cash equivalents increased $92 million. Average interest-bearing deposits increased $295 million. Average funds purchased and repurchase agreements grew $1.9 billion while other borrowings increased $763 million.
The yield on average earning assets was 5.29 percent, up 23 basis points. The loan portfolio yield increased 36 basis points to 7.03 percent while the yield on the available for sale securities portfolio increased 13 basis points to 3.00 percent. The yield on interest-bearing cash and cash equivalents increased 113 basis points to 5.41 percent.
Funding costs were 3.27 percent, an 84 basis point increase. The cost of interest-bearing deposits increased 73 basis points to 2.56 percent. The cost of funds purchased and repurchase agreements increased 125 basis points to 4.58 percent while the cost of other borrowings was up 39 basis points to 5.12 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 98 basis points, an increase of 16 basis points.
Fees and Commissions Revenue
Fees and commissions revenue totaled $200.5 million for the second quarter of 2023, an increase of $14.5 million over the prior quarter.
Brokerage and trading revenue increased $12.6 million, with a $9.3 million increase in trading revenue, largely due to a higher volume of U.S. agency residential mortgage-backed securities and related derivatives contracts trading activity. Customer hedging revenue grew $5.3 million, primarily driven by energy customer activity. Fiduciary and asset management revenue increased $2.3 million, largely due to seasonal tax preparation fee income.


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Operating Expense
Total operating expense was $318.7 million for the second quarter of 2023, an increase of $12.9 million compared to the first quarter of 2023.
Personnel expense was $190.7 million, including $2.7 million of deferred compensation expense. Excluding deferred compensation costs, personnel expense increased $7.5 million. Cash-based incentive compensation increased $6.6 million, driven by sales activities. Regular compensation increased $4.1 million, representing the full quarter impact of our annual merit increases in March. Employee benefits expense decreased $2.5 million due to a seasonal decrease in payroll taxes, partially offset by higher healthcare costs.
Non-personnel expense was $128.0 million, an increase of $4.4 million. Higher seasonal prepayments led to a $2.5 million increase in mortgage banking costs. Occupancy and equipment costs grew $1.6 million, largely related to seasonal increases in general building operating costs.
Loans, Deposits and Capital
Loans
Outstanding loans were $23.2 billion at June 30, 2023, growing $488 million over March 31, 2023, largely due to growth in commercial and commercial real estate loans. Unfunded loan commitments decreased $141 million compared to the first quarter of 2023.
Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $317 million over the prior quarter.
Energy loan balances increased $111 million to $3.5 billion or 15 percent of total loans. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 67 percent of committed production loans are secured by properties primarily producing oil. The remaining 33 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.3 billion at June 30, 2023, an increase of $224 million over March 31, 2023.
General business loans increased $93 million to $3.4 billion or 15 percent of total loans. General business loans include $2.0 billion of wholesale/retail loans and $1.4 billion of loans from other commercial industries.
Healthcare sector loan balances increased $92 million, totaling $4.0 billion or 17 percent of total loans. Our healthcare sector loans primarily consist of $3.3 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally, we loan to borrowers with a portfolio of multiple facilities, which serves to help diversify risks specific to a single facility.
Services sector loan balances increased $21 million to $3.6 billion or 15 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, educational services and specialty trade contractors.


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Commercial real estate loan balances grew $155 million and represent 21 percent of total loans. Loans secured by multifamily residential properties increased $139 million to $1.5 billion. Loans secured by industrial facilities increased $40 million to $1.3 billion. This growth was partially offset by a $40 million decrease in loans secured by office facilities. Unfunded commercial real estate loan commitments were $2.4 billion at June 30, 2023, a decrease of $306 million compared to March 31, 2023. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of Tier 1 Capital. While loan commitments are presently at the upper concentration limit, we expect continued growth in our commercial real estate balances as loans fund, primarily in the multifamily and industrial loan portfolios.
Loans to individuals increased $15 million and represent 16 percent of total loans. Residential mortgage loans increased $29 million while personal loans decreased $14 million.
Liquidity and Capital
Our funding sources, which primarily include deposits and borrowings from the Federal Home Loan Banks, provide adequate liquidity to meet our needs. The loan to deposit ratio was 70 percent at June 30, 2023, consistent with the prior quarter, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.
Period-end deposits totaled $33.3 billion at June 30, 2023, a $714 million increase. Time deposits increased $1.1 billion while interest-bearing transaction account balances increased $473 million. Demand deposits decreased $824 million. Average deposits were $32.4 billion at June 30, 2023, a $1.1 billion decrease. Average demand deposit account balances decreased $1.4 billion and average interest-bearing transaction account balances decreased $271 million. Average time deposits increased $598 million. Average Commercial Banking deposits decreased $1.0 billion to $14.8 billion or 46 percent of total deposits. Our commercial deposit portfolio is highly diversified across industries and customers. The highest concentration by industry within our commercial deposit portfolio is with our energy customers representing 6 percent of our total deposits. Wealth Management deposits increased $112 million to $7.5 billion or 23 percent of total deposits. Consumer Banking deposits decreased $262 million to $8.0 billion or 25 percent of total deposits.
The company's common equity Tier 1 capital ratio was 12.13 percent at June 30, 2023. In addition, the company's Tier 1 capital ratio was 12.13 percent, total capital ratio was 13.24 percent, and leverage ratio was 9.75 percent at June 30, 2023. At the beginning of 2020, we elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period. This election added 7 basis points to the company's common equity tier 1 capital ratio at June 30, 2023. At March 31, 2023, the company's common equity Tier 1 capital ratio was 12.19 percent, Tier 1 capital ratio was 12.20 percent, total capital ratio was 13.21 percent, and leverage ratio was 9.94 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 7.79 percent at June 30, 2023 and 8.46 percent at March 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.49 percent. 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.
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The company repurchased 266,000 shares of common stock at an average price paid of $84.08 a share in the second quarter of 2023. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.
Credit Quality
Expected credit losses on assets carried at amortized cost are recognized over their projected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Our models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rates, commercial real estate vacancy rates and WTI oil prices on a probability weighted basis.
A $17.0 million provision for credit losses was necessary for the second quarter of 2023, primarily related to higher assumed commercial real estate vacancy rates during the forecast period and loan growth during the quarter.
The probability weighting of our base case reasonable and supportable forecast remained at 50 percent in the second quarter of 2023 as the level of uncertainty in economic forecasts remained high. Our base case reasonable and supportable forecast assumes inflation continues to improve from the peak experienced in 2022 and reaches 3.1 percent by the second quarter of 2024. We expect the impact of the Russian-Ukraine conflict remains isolated. Inflation pressures cause modest declines in real household income compared to pre-pandemic levels, resulting in below-trend GDP growth. GDP is projected to grow by 1.0 percent over the next twelve months. Job openings revert to more normalized levels and overall hiring levels decline, causing the national unemployment rate to modestly increase over the next four quarters. Our forecasted civilian unemployment rate is 3.8 percent for the third quarter of 2023, increasing to 4.2 percent by the second quarter of 2024. Our base case also assumes the Federal Reserve increases the federal funds rate once in the third quarter of 2023, resulting in a target range of 5.25 percent to 5.50 percent. No additional rate increases are anticipated for the remainder of the forecast horizon. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of June 30, 2023, averaging $69.39 per barrel over the next twelve months.
Our downside case, probability weighted at 40 percent, assumes that inflation moderates from the peak experienced in 2022, but remains elevated through the forecast horizon ending at 3.8 percent by the second quarter of 2024. Higher levels of inflation force the Federal Reserve to adopt a more aggressive monetary policy as compared to the base case scenario. This results in a federal funds target range of 6.00 to 6.25 percent by the second quarter of 2024. The United States economy is pushed into a recession, with a contraction in economic activity and a sharp increase in the unemployment rate from 4.7 percent in the third quarter of 2023 to 6.1 percent in the second quarter of 2024. In this scenario, real GDP is expected to contract 2.0 percent over the next four quarters. WTI oil prices are projected to average $55.78 per barrel over the next twelve months, peaking at $62.31 in the third quarter of 2023 and falling 19 percent over the following three quarters.
Nonperforming assets totaled $136 million or 0.59 percent of outstanding loans and repossessed assets at June 30, 2023, compared to $133 million or 0.58 percent at March 31, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $125 million or 0.54 percent of outstanding loans and repossessed assets at June 30, 2023, compared to $119 million or 0.53 percent at March 31, 2023.
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Nonaccruing loans were $132 million or 0.57 percent of outstanding loans at June 30, 2023. Nonaccruing commercial loans totaled $73 million or 0.50 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $17 million or 0.35 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $42 million or 1.11 percent of outstanding loans to individuals.
Nonaccruing loans increased $12.0 million compared to March 31, 2023. Nonaccruing energy loans increased $20 million and nonaccruing general business loans increased $3.0 million. These increases were partially offset by a $4.3 million decrease in nonaccruing commercial real estate loans and a $3.6 million decrease in nonaccruing services loans. New nonaccruing loans identified in the second quarter totaled $28 million, offset by $5.9 million in payments received and $8.0 million of 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 $109 million at June 30, 2023. The $28 million decrease compared to March 31, 2023 was primarily related to potential problem energy and general business loans.
At June 30, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $323 million or 1.39 percent of outstanding loans and 267 percent of nonaccruing loans. The allowance for loan losses totaled $263 million or 1.13 percent of outstanding loans and 218 percent of nonaccruing loans. At March 31, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $312 million or 1.37 percent of outstanding loans and 295 percent of nonaccruing loans. The allowance for loan losses was $249 million or 1.10 percent of outstanding loans and 235 percent of nonaccruing loans. The allowance to nonaccruing loan percentages referenced above omit residential mortgage loans guaranteed by U.S. government agencies.
Gross charge-offs were $8.0 million for the second quarter compared to $3.7 million for the first quarter of 2023. Gross charge-offs for the second quarter were primarily related to a single commercial real estate borrower and a single commercial services borrower. Recoveries totaled $1.3 million for the second quarter of 2023 and $2.9 million for the prior quarter. Net charge-offs were $6.7 million or 0.12 percent of average loans on an annualized basis in the second quarter compared to net charge-offs of $769 thousand or 0.01 percent of average loans on an annualized basis in the first quarter. Net charge-offs were 0.10 percent of average loans over the last four quarters.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $11.9 billion at June 30, 2023, largely unchanged compared to March 31, 2023. At June 30, 2023, the available for sale securities portfolio consisted primarily of $6.1 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.6 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At June 30, 2023, the available for sale securities portfolio had a net unrealized loss of $899 million compared to $742 million at March 31, 2023.
We hold an inventory of trading securities in support of sales to a variety of customers. At June 30, 2023, the trading securities portfolio totaled $5.4 billion compared to $2.3 billion at March 31, 2023.
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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 $114 million to $212 million at June 30, 2023.
Derivative contracts are carried at fair value. At June 30, 2023, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $538 million compared to $572 million at March 31, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $526 million at June 30, 2023 and $578 million at March 31, 2023.
The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million during the second quarter of 2023, including a $10.3 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 $232 thousand of related net interest expense.

Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, July 26, 2023 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 1-844-512-2921 and referencing conference ID # 13739748.
About BOK Financial Corporation
BOK Financial Corporation is a $49 billion regional financial services company headquartered in Tulsa, Oklahoma with $104 billion in assets under management or 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's holdings include TransFund, Cavanal Hill Investment Management, Inc. 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, Wisconsin, Connecticut and Tennessee. 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 June 30, 2023 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.
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This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, 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 acquisitions and 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 various forward-looking 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 government, 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 Corporation 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.
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                                                Exhibit 99.1(b)
BALANCE SHEETS – UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Jun. 30, 2023Mar. 31, 2023
ASSETS
Cash and due from banks$875,714 $792,371 
Interest-bearing cash and cash equivalents571,616 571,613 
Trading securities5,442,364 2,294,358 
Investment securities, net of allowance2,374,071 2,448,136 
Available for sale securities11,938,523 11,937,841 
Fair value option securities212,321 326,390 
Restricted equity securities330,086 288,181 
Residential mortgage loans held for sale94,820 74,175 
Loans:
Commercial14,534,516 14,217,349 
Commercial real estate4,970,801 4,815,316 
Loans to individuals3,732,342 3,717,388 
Total loans23,237,659 22,750,053 
Allowance for loan losses(262,714)(249,460)
Loans, net of allowance22,974,945 22,500,593 
Premises and equipment, net617,918 623,112 
Receivables263,915 265,680 
Goodwill1,044,749 1,044,749 
Intangible assets, net69,246 72,689 
Mortgage servicing rights304,722 299,803 
Real estate and other repossessed assets, net4,227 12,651 
Derivative contracts, net353,037 394,291 
Cash surrender value of bank-owned life insurance411,084 408,614 
Receivable on unsettled securities sales133,909 18,186 
Other assets1,220,653 1,150,689 
TOTAL ASSETS$49,237,920 $45,524,122 
LIABILITIES AND EQUITY
Deposits:
Demand$10,782,548 $11,606,975 
Interest-bearing transaction18,907,981 18,434,489 
Savings897,937 962,673 
Time2,706,377 1,576,610 
Total deposits33,294,843 32,580,747 
Funds purchased and repurchase agreements5,446,864 1,599,724 
Other borrowings3,777,056 4,735,885 
Subordinated debentures131,154 131,148 
Accrued interest, taxes and expense228,797 268,449 
Due on unsettled securities purchases400,430 262,492 
Derivative contracts, net550,653 510,483 
Other liabilities540,726 557,167 
TOTAL LIABILITIES44,370,523 40,646,095 
Shareholders' equity:
Capital, surplus and retained earnings5,700,526 5,603,340 
Accumulated other comprehensive loss(836,672)(728,554)
TOTAL SHAREHOLDERS' EQUITY4,863,854 4,874,786 
Non-controlling interests3,543 3,241 
TOTAL EQUITY4,867,397 4,878,027 
TOTAL LIABILITIES AND EQUITY$49,237,920 $45,524,122 

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AVERAGE BALANCE SHEETS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
ASSETS
Interest-bearing cash and cash equivalents$708,475 $616,596 $568,307 $748,263 $843,619 
Trading securities4,274,803 3,031,969 3,086,985 3,178,068 4,166,954 
Investment securities, net of allowance2,408,122 2,473,796 2,535,305 2,593,989 610,983 
Available for sale securities12,033,597 11,738,693 10,953,851 10,306,257 12,258,072 
Fair value option securities245,469 300,372 92,012 36,846 54,832 
Restricted equity securities351,944 316,724 216,673 173,656 167,732 
Residential mortgage loans held for sale72,959 65,769 98,613 132,685 148,183 
Loans:
Commercial14,316,474 14,046,237 13,846,339 13,508,325 13,472,488 
Commercial real estate4,896,230 4,757,362 4,488,091 4,434,650 4,061,129 
Loans to individuals3,676,350 3,672,648 3,641,574 3,656,257 3,524,097 
Total loans22,889,054 22,476,247 21,976,004 21,599,232 21,057,714 
Allowance for loan losses(252,890)(238,909)(242,450)(241,136)(246,064)
Loans, net of allowance22,636,164 22,237,338 21,733,554 21,358,096 20,811,650 
Total earning assets42,731,533 40,781,257 39,285,300 38,527,860 39,062,025 
Cash and due from banks875,280 857,771 865,796 821,801 822,599 
Derivative contracts, net
410,793 546,018 1,239,717 2,019,905 3,051,429 
Cash surrender value of bank-owned life insurance
409,313 408,124 406,826 410,667 408,489 
Receivable on unsettled securities sales163,903 177,312 194,996 219,113 457,165 
Other assets3,317,285 3,211,986 3,216,983 3,119,856 3,486,691 
TOTAL ASSETS$47,908,107 $45,982,468 $45,209,618 $45,119,202 $47,288,398 
LIABILITIES AND EQUITY
Deposits:
Demand$10,998,201 $12,406,408 $14,176,189 $15,105,305 $15,202,597 
Interest-bearing transaction18,368,592 18,639,900 18,898,315 19,556,806 21,037,294 
Savings926,882 958,443 969,275 978,596 981,493 
Time2,076,037 1,477,720 1,417,606 1,409,069 1,373,036 
Total deposits32,369,712 33,482,471 35,461,385 37,049,776 38,594,420 
Funds purchased and repurchase agreements
3,670,994 1,759,237 1,046,447 800,759 1,224,134 
Other borrowings5,275,291 4,512,280 2,523,195 1,528,887 1,301,358 
Subordinated debentures131,153 131,166 131,180 131,199 131,219 
Derivative contracts, net576,558 428,023 445,105 105,221 535,574 
Due on unsettled securities purchases436,353 316,738 575,957 331,428 380,332 
Other liabilities503,134 511,530 408,029 396,510 389,031 
TOTAL LIABILITIES42,963,195 41,141,445 40,591,298 40,343,780 42,556,068 
Total equity4,944,912 4,841,023 4,618,320 4,775,422 4,732,330 
TOTAL LIABILITIES AND EQUITY$47,908,107 $45,982,468 $45,209,618 $45,119,202 $47,288,398 

11

STATEMENTS OF EARNINGS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
Interest revenue$570,367 $294,247 $1,087,096 $577,346 
Interest expense248,106 20,229 412,487 34,917 
Net interest revenue322,261 274,018 674,609 542,429 
Provision for credit losses17,000 — 33,000 — 
Net interest revenue after provision for credit losses
305,261 274,018 641,609 542,429 
Other operating revenue:
Brokerage and trading revenue65,006 44,043 117,402 16,964 
Transaction card revenue26,003 26,940 51,624 51,156 
Fiduciary and asset management revenue52,997 49,838 103,654 96,237 
Deposit service charges and fees27,100 28,500 53,068 55,504 
Mortgage banking revenue15,141 11,368 29,508 28,018 
Other revenue14,250 12,684 31,220 23,129 
Total fees and commissions200,497 173,373 386,476 271,008 
Other gains (losses), net12,618 (7,639)14,869 (9,283)
Loss on derivatives, net(8,159)(13,569)(9,503)(60,550)
Loss on fair value option securities, net(2,158)(2,221)(5,120)(13,422)
Change in fair value of mortgage servicing rights9,261 17,485 3,202 66,595 
Gain (loss) on available for sale securities, net(3,010)1,188 (3,010)2,125 
Total other operating revenue209,049 168,617 386,914 256,473 
Other operating expense:
Personnel190,652 154,923 372,797 314,151 
Business promotion7,640 6,325 16,209 12,838 
Charitable contributions to BOKF Foundation1,142 — 1,142 — 
Professional fees and services12,777 12,475 25,825 23,888 
Net occupancy and equipment30,105 27,489 58,564 58,344 
Insurance6,974 4,728 14,289 9,011 
Data processing and communications45,307 41,280 90,109 81,116 
Printing, postage and supplies3,728 3,929 7,621 7,618 
Amortization of intangible assets3,474 4,049 6,865 8,013 
Mortgage banking costs8,300 9,437 14,082 17,314 
Other expense8,574 9,020 16,982 18,980 
Total other operating expense318,673 273,655 624,485 551,273 
Net income before taxes195,637 168,980 404,038 247,629 
Federal and state income taxes44,001 36,122 89,906 52,319 
Net income151,636 132,858 314,132 195,310 
Net income (loss) attributable to non-controlling interests328 12 456 (24)
Net income attributable to BOK Financial Corporation shareholders
$151,308 $132,846 $313,676 $195,334 
Average shares outstanding:
Basic65,994,132 67,453,748 66,162,048 67,616,396 
Diluted65,994,132 67,455,172 66,162,048 67,617,834 
Net income per share:
Basic$2.27 $1.96 $4.70 $2.87 
Diluted$2.27 $1.96 $4.70 $2.87 


12

QUARTERLY EARNINGS TREND – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Interest revenue$570,367 $516,729 $451,606 $363,150 $294,247 
Interest expense248,106 164,381 98,980 46,825 20,229 
Net interest revenue322,261 352,348 352,626 316,325 274,018 
Provision for credit losses17,000 16,000 15,000 15,000 — 
Net interest revenue after provision for credit losses
305,261 336,348 337,626 301,325 274,018 
Other operating revenue:
Brokerage and trading revenue65,006 52,396 63,008 61,006 44,043 
Transaction card revenue26,003 25,621 27,136 25,974 26,940 
Fiduciary and asset management revenue52,997 50,657 49,899 50,190 49,838 
Deposit service charges and fees27,100 25,968 26,429 28,703 28,500 
Mortgage banking revenue15,141 14,367 10,065 11,282 11,368 
Other revenue14,250 16,970 17,034 15,479 12,684 
Total fees and commissions200,497 185,979 193,571 192,634 173,373 
Other gains (losses), net12,618 2,251 8,427 979 (7,639)
Gain (loss) on derivatives, net(8,159)(1,344)4,548 (17,009)(13,569)
Loss on fair value option securities, net(2,158)(2,962)(2,568)(4,368)(2,221)
Change in fair value of mortgage servicing rights
9,261 (6,059)(2,904)16,570 17,485 
Gain (loss) on available for sale securities, net(3,010)— (3,988)892 1,188 
Total other operating revenue209,049 177,865 197,086 189,698 168,617 
Other operating expense:
Personnel190,652 182,145 186,419 170,348 154,923 
Business promotion7,640 8,569 7,470 6,127 6,325 
Charitable contributions to BOKF Foundation
1,142 — 2,500 — — 
Professional fees and services12,777 13,048 18,365 14,089 12,475 
Net occupancy and equipment30,105 28,459 29,227 29,296 27,489 
Insurance6,974 7,315 4,677 4,306 4,728 
Data processing and communications
45,307 44,802 43,048 41,743 41,280 
Printing, postage and supplies3,728 3,893 3,890 4,349 3,929 
Amortization of intangible assets
3,474 3,391 3,736 3,943 4,049 
Mortgage banking costs8,300 5,782 9,016 9,504 9,437 
Other expense8,574 8,408 10,108 11,046 9,020 
Total other operating expense318,673 305,812 318,456 294,751 273,655 
Net income before taxes195,637 208,401 216,256 196,272 168,980 
Federal and state income taxes44,001 45,905 47,864 39,681 36,122 
Net income151,636 162,496 168,392 156,591 132,858 
Net income (loss) attributable to non-controlling interests
328 128 (37)81 12 
Net income attributable to BOK Financial Corporation shareholders
$151,308 $162,368 $168,429 $156,510 $132,846 
Average shares outstanding:
Basic65,994,132 66,331,775 66,627,955 67,003,199 67,453,748 
Diluted65,994,132 66,331,775 66,627,955 67,004,623 67,455,172 
Net income per share:
Basic$2.27 $2.43 $2.51 $2.32 $1.96 
Diluted$2.27 $2.43 $2.51 $2.32 $1.96 
13

FINANCIAL HIGHLIGHTS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Capital:
Period-end shareholders' equity$4,863,854 $4,874,786 $4,682,649 $4,509,934 $4,737,339 
Risk weighted assets$38,218,164 $37,192,197 $38,142,231 $36,866,994 $36,787,092 
Risk-based capital ratios:
Common equity tier 112.13 %12.19 %11.69 %11.80 %11.61 %
Tier 112.13 %12.20 %11.71 %11.82 %11.63 %
Total capital13.24 %13.21 %12.67 %12.81 %12.59 %
Leverage ratio9.75 %9.94 %9.91 %9.76 %9.12 %
Tangible common equity ratio1
7.79 %8.46 %7.63 %7.96 %8.16 %
Adjusted tangible common equity ratio1
7.49 %8.22 %7.36 %7.66 %8.10 %
Common stock:
Book value per share$73.28 $73.19 $69.93 $67.06 $69.87 
Tangible book value per share$56.50 $56.42 $53.19 $50.34 $53.22 
Market value per share:
High$90.91 $106.47 $110.28 $95.51 $94.76 
Low$74.40 $80.00 $88.46 $69.82 $74.03 
Cash dividends paid$35,879 $36,006 $36,188 $35,661 $35,892 
Dividend payout ratio23.71 %22.18 %21.49 %22.79 %27.02 %
Shares outstanding, net66,369,208 66,600,833 66,958,634 67,254,383 67,806,005 
Stock buy-back program:
Shares repurchased266,000 447,071 314,406 548,034 294,084 
Amount$22,366 $44,100 $32,429 $49,980 $24,404 
Average price paid per share2
$84.08 $98.64 $103.14 $91.20 $82.98 
Performance ratios (quarter annualized):
Return on average assets1.27 %1.43 %1.48 %1.38 %1.13 %
Return on average equity12.28 %13.61 %14.48 %13.01 %11.27 %
Return on average tangible common equity1
15.86 %17.71 %19.14 %17.04 %14.81 %
Net interest margin3.00 %3.45 %3.54 %3.24 %2.76 %
Efficiency ratio1,3
58.75 %56.79 %56.61 %57.33 %60.79 %
Other data:
Tax equivalent interest$2,200 $2,285 $2,287 $2,163 $2,040 
Net unrealized loss on available for sale securities$(898,906)$(741,508)$(865,553)$(935,788)$(522,812)
14

Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Mortgage banking:
Mortgage production revenue$(284)$(633)$(3,983)$(2,406)$(504)
Mortgage loans funded for sale$214,785 $138,624 $141,090 $260,210 $360,237 
Add: current period-end outstanding commitments
55,031 71,693 45,492 75,779 106,004 
Less: prior period end outstanding commitments
71,693 45,492 75,779 106,004 160,260 
Total mortgage production volume
$198,123 $164,825 $110,803 $229,985 $305,981 
Mortgage loan refinances to mortgage loans funded for sale
8 %9 %10 %10 %19 %
Realized margin on funded mortgage loans(0.14)%(1.25)%(1.10)%(0.41)%0.88 %
Production revenue as a percentage of production volume(0.14)%(0.38)%(3.59)%(1.05)%(0.16)%
Mortgage servicing revenue$15,425 $15,000 $14,048 $13,688 $11,872 
Average outstanding principal balance of mortgage loans serviced for others
20,807,044 21,121,319 18,923,078 19,070,221 17,336,596 
Average mortgage servicing revenue rates0.30 %0.29 %0.29 %0.28 %0.27 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$(8,099)$(1,711)$4,373 $(17,027)$(13,639)
Loss on fair value option securities, net(2,158)(2,962)(2,568)(4,368)(2,221)
Gain (loss) on economic hedge of mortgage servicing rights(10,257)(4,673)1,805 (21,395)(15,860)
Gain (loss) on changes in fair value of mortgage servicing rights9,261 (6,059)(2,904)16,570 17,485 
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(996)(10,732)(1,099)(4,825)1,625 
Net interest revenue (expense) on fair value option securities4
(232)187 (118)29 275 
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$(1,228)$(10,545)$(1,217)$(4,796)$1,900 
1    See Reconciliation of Non-GAAP Measures following.
2    Excludes 1 percent excise tax on corporate stock repurchases.
3 Prior period ratios have been adjusted to be consistent with the current period presentation.
4     Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


15

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity$4,863,854 $4,874,786 $4,682,649 $4,509,934 $4,737,339 
Less: Goodwill and intangible assets, net
1,113,995 1,117,438 1,120,880 1,124,582 1,128,493 
Tangible common equity3,749,859 3,757,348 3,561,769 3,385,352 3,608,846 
Add: Unrealized gain (loss) on investment securities, net(189,152)(140,947)(167,477)(165,206)(30,305)
Add: Tax effect on unrealized gain (loss) on investment securities, net44,486 33,149 39,196 38,665 7,093 
Adjusted tangible common equity$3,605,193 $3,649,550 $3,433,488 $3,258,811 $3,585,634 
Total assets$49,237,920 $45,524,122 $47,790,642 $43,645,446 $45,377,072 
Less: Goodwill and intangible assets, net
1,113,995 1,117,438 1,120,880 1,124,582 1,128,493 
Tangible assets$48,123,925 $44,406,684 $46,669,762 $42,520,864 $44,248,579 
Tangible common equity ratio7.79 %8.46 %7.63 %7.96 %8.16 %
Adjusted tangible common equity ratio7.49 %8.22 %7.36 %7.66 %8.10 %
Reconciliation of return on average tangible common equity:
Total average shareholders' equity$4,941,352 $4,837,567 $4,613,929 $4,771,123 $4,728,311 
Less: Average goodwill and intangible assets, net1,115,652 1,119,123 1,122,680 1,126,440 1,130,430 
Average tangible common equity$3,825,700 $3,718,444 $3,491,249 $3,644,683 $3,597,881 
Net Income151,308 162,368 168,429 156,510 132,846 
Return on average tangible common equity15.86 %17.71 %19.14 %17.04 %14.81 %
Reconciliation of pre-provision net revenue:
Net income before taxes$195,637 $208,401 $216,256 $196,272 $168,980 
Provision for expected credit losses17,000 16,000 15,000 15,000 — 
Net income (loss) attributable to non-controlling interests328 128 (37)81 12 
Pre-provision net revenue$212,309 $224,273 $231,293 $211,191 $168,968 
Calculation of efficiency ratio:
Total other operating expense$318,673 $305,812 $318,456 $294,751 $273,655 
Less: Amortization of intangible assets3,474 3,391 3,736 3,943 4,049 
Adjusted total other operating expense$315,199 $302,421 $314,720 $290,808 $269,606 
Net interest revenue$322,261 $352,348 $352,626 $316,325 $274,018 
Tax-equivalent adjustment2,200 2,285 2,287 2,163 2,040 
Tax-equivalent net interest revenue324,461 354,633 354,913 318,488 276,058 
Total other operating revenue209,049 177,865 197,086 189,698 168,617 
Less: Gain (loss) on available for sale securities, net(3,010)— (3,988)892 1,188 
Adjusted revenue$536,520 $532,498 $555,987 $507,294 $443,487 
Efficiency ratio58.75 %56.79 %56.61 %57.33 %60.79 %
16

Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue$322,261 $352,348 $352,626 $316,325 $274,018 
Less: Trading activities net interest revenue(3,461)70 (860)4,478 15,073 
Net interest revenue excluding trading activities325,722 352,278 353,486 311,847 258,945 
Tax-equivalent adjustment2,200 2,285 2,287 2,163 2,040 
Tax-equivalent net interest revenue excluding trading activities$327,922 $354,563 $355,773 $314,010 $260,985 
Average total earning assets$42,731,533 $40,781,257 $39,285,300 $38,527,860 $39,062,025 
Less: Average trading activities interest-earning assets4,274,803 3,031,969 3,086,985 3,178,068 4,166,954 
Average interest-earning assets excluding trading activities$38,456,730 $37,749,288 $36,198,315 $35,349,792 $34,895,071 
Net interest margin on average interest-earning assets3.00 %3.45 %3.54 %3.24 %2.76 %
Net interest margin on average trading activities interest-earning assets(0.34)%0.00 %(0.12)%0.53 %1.31 %
Net interest margin on average interest-earning assets excluding trading activities3.36 %3.72 %3.84 %3.49 %2.95 %
Explanation of Non-GAAP Measures

The tangible common equity ratio and return on average tangible common equity are primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities, less intangible assets and equity that does not benefit common shareholders. The adjusted tangible common equity ratio also includes unrealized gains and losses on the investment portfolio. These measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income in shareholders' equity.

Pre-provision net revenue is a measure of revenue less expenses, and is calculated before provision for credit losses and income tax expense. This financial measure is frequently used by investors and analysts and enables them to assess a company's ability to generate earnings to cover credit losses through a credit cycle. It also provides an additional basis for comparing the results of operations between periods by isolating the impact of the provision for credit losses, which can vary significantly between periods.

The efficiency ratio measures the Company's ability to use its assets and manage its liabilities effectively in the current period. Prior to the second quarter of 2023, the efficiency ratio did not exclude amortization of intangible assets and only included tax-equivalent net interest revenue and fees and commissions as part of total revenue. All prior periods were adjusted to conform with the current methodology.

Net interest revenue and net interest margin excluding trading activities removes the effect of trading activities on these metrics allowing management and investors to assess the performance of the Company's core lending and deposit activities without the associated volatility from trading activities.


17

LOANS TREND – UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Commercial:     
Healthcare$3,991,387 $3,899,341 $3,845,017 $3,826,623 $3,696,963 
Services3,585,169 3,563,702 3,431,521 3,280,925 3,421,493 
Energy3,508,752 3,398,057 3,424,790 3,371,588 3,393,072 
General business3,449,208 3,356,249 3,511,171 3,148,783 3,110,309 
Total commercial14,534,516 14,217,349 14,212,499 13,627,919 13,621,837 
Commercial real estate:
Multifamily1,502,971 1,363,881 1,212,883 1,126,700 878,565 
Industrial1,349,709 1,309,435 1,221,501 1,103,905 953,626 
Office1,005,660 1,045,700 1,053,331 1,086,615 1,100,115 
Retail617,886 618,264 620,518 635,021 637,304 
Residential construction and land development
106,370 102,828 95,684 91,690 111,575 
Other commercial real estate388,205 375,208 402,860 429,980 424,963 
Total commercial real estate4,970,801 4,815,316 4,606,777 4,473,911 4,106,148 
Loans to individuals:     
Residential mortgage1,993,690 1,926,027 1,890,784 1,851,836 1,784,729 
Residential mortgages guaranteed by U.S. government agencies186,170 224,753 245,940 262,466 293,838 
Personal1,552,482 1,566,608 1,601,150 1,574,325 1,484,596 
Total loans to individuals3,732,342 3,717,388 3,737,874 3,688,627 3,563,163 
Total$23,237,659 $22,750,053 $22,557,150 $21,790,457 $21,291,148 
18

LOANS MANAGED BY PRINCIPAL MARKET AREA – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Texas:
Commercial$7,223,820 $7,103,166 $6,878,618 $6,644,890 $6,645,698 
Commercial real estate1,748,796 1,675,831 1,555,508 1,448,590 1,339,452 
Loans to individuals974,911 992,343 982,700 970,459 934,856 
Total Texas9,947,527 9,771,340 9,416,826 9,063,939 8,920,006 
Oklahoma:
Commercial3,251,547 3,178,934 3,382,577 3,108,608 3,139,093 
Commercial real estate573,559 574,708 582,109 608,856 576,458 
Loans to individuals2,079,311 2,049,472 2,077,124 2,054,362 1,982,247 
Total Oklahoma5,904,417 5,803,114 6,041,810 5,771,826 5,697,798 
Colorado:
Commercial2,179,473 2,148,066 2,149,199 2,117,181 2,082,688 
Commercial real estate683,973 646,537 613,912 565,057 473,231 
Loans to individuals223,200 231,368 241,902 237,981 234,105 
Total Colorado3,086,646 3,025,971 3,005,013 2,920,219 2,790,024 
Arizona:
Commercial1,177,778 1,115,973 1,124,289 1,103,000 1,085,401 
Commercial real estate926,750 881,465 860,947 850,319 766,767 
Loans to individuals242,102 240,556 229,872 225,981 212,870 
Total Arizona2,346,630 2,237,994 2,215,108 2,179,300 2,065,038 
Kansas/Missouri:
Commercial309,148 318,782 310,715 307,456 338,910 
Commercial real estate516,299 489,951 479,968 466,955 458,157 
Loans to individuals138,960 129,580 131,307 125,039 125,584 
Total Kansas/Missouri964,407 938,313 921,990 899,450 922,651 
New Mexico:
Commercial287,443 280,945 263,349 258,754 253,825 
Commercial real estate425,472 449,715 417,008 426,367 431,606 
Loans to individuals64,803 65,770 67,163 68,095 67,026 
Total New Mexico777,718 796,430 747,520 753,216 752,457 
Arkansas:
Commercial105,307 71,483 103,752 88,030 76,222 
Commercial real estate95,952 97,109 97,325 107,767 60,477 
Loans to individuals9,055 8,299 7,806 6,710 6,475 
Total Arkansas210,314 176,891 208,883 202,507 143,174 
TOTAL BOK FINANCIAL$23,237,659 $22,750,053 $22,557,150 $21,790,457 $21,291,148 
Loans attributed to a principal market may not always represent the location of the borrower or the collateral.
19

DEPOSITS BY PRINCIPAL MARKET AREA – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Oklahoma:
    Demand$4,273,136 $4,369,944 $4,585,963 $5,143,405 $5,422,593 
    Interest-bearing:
       Transaction9,979,534 9,468,100 9,475,528 9,619,419 10,240,378 
       Savings531,536 564,829 555,407 558,256 561,413 
       Time1,945,916 942,787 794,002 776,306 678,127 
    Total interest-bearing12,456,986 10,975,716 10,824,937 10,953,981 11,479,918 
Total Oklahoma16,730,122 15,345,660 15,410,900 16,097,386 16,902,511 
Texas:
    Demand2,876,568 3,154,789 3,873,759 4,609,255 4,670,535 
    Interest-bearing:
       Transaction4,532,093 4,366,932 4,878,482 4,781,920 5,344,326 
       Savings162,704 175,012 178,356 179,049 183,708 
       Time377,424 321,774 356,538 343,015 333,038 
    Total interest-bearing5,072,221 4,863,718 5,413,376 5,303,984 5,861,072 
Total Texas7,948,789 8,018,507 9,287,135 9,913,239 10,531,607 
Colorado:
    Demand1,726,130 1,869,194 2,462,891 2,510,179 2,799,798 
    Interest-bearing:
       Transaction1,825,295 2,126,435 2,123,218 2,221,796 2,277,563 
       Savings66,968 72,548 77,961 80,542 82,976 
       Time148,840 128,583 135,043 151,064 160,795 
    Total interest-bearing2,041,103 2,327,566 2,336,222 2,453,402 2,521,334 
Total Colorado3,767,233 4,196,760 4,799,113 4,963,581 5,321,132 
New Mexico:
    Demand912,218 997,364 1,141,958 1,296,410 1,347,600 
    Interest-bearing:
       Transaction712,541 674,328 691,915 717,492 845,442 
       Savings102,729 111,771 112,430 113,056 115,660 
       Time179,548 137,875 133,625 142,856 148,532 
    Total interest-bearing994,818 923,974 937,970 973,404 1,109,634 
Total New Mexico1,907,036 1,921,338 2,079,928 2,269,814 2,457,234 
Arizona:
    Demand592,144 780,051 844,327 903,296 901,543 
    Interest-bearing:
       Transaction800,970 687,527 739,628 788,142 792,269 
       Savings14,489 16,993 16,496 18,258 17,999 
       Time31,248 27,755 24,846 26,704 28,774 
    Total interest-bearing846,707 732,275 780,970 833,104 839,042 
Total Arizona1,438,851 1,512,326 1,625,297 1,736,400 1,740,585 
20

Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Kansas/Missouri:
    Demand363,534 393,321 436,259 479,459 537,143 
    Interest-bearing:
       Transaction1,014,247 1,040,009 694,163 747,981 913,921 
       Savings16,316 18,292 20,678 19,375 19,943 
       Time16,176 13,061 12,963 13,258 13,962 
    Total interest-bearing1,046,739 1,071,362 727,804 780,614 947,826 
Total Kansas/Missouri1,410,273 1,464,683 1,164,063 1,260,073 1,484,969 
Arkansas:
    Demand38,818 42,312 50,180 43,111 41,084 
    Interest-bearing:
       Transaction43,301 71,158 56,181 123,273 130,300 
       Savings3,195 3,228 3,083 3,098 3,125 
       Time7,225 4,775 4,825 5,940 6,371 
    Total interest-bearing53,721 79,161 64,089 132,311 139,796 
Total Arkansas92,539 121,473 114,269 175,422 180,880 
TOTAL BOK FINANCIAL$33,294,843 $32,580,747 $34,480,705 $36,415,915 $38,618,918 

21

NET INTEREST MARGIN TREND – UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents5.41 %4.28 %4.06 %1.87 %0.83 %
Trading securities4.50 %4.52 %3.70 %2.72 %2.00 %
Investment securities, net of allowance1.44 %1.46 %1.46 %1.42 %2.35 %
Available for sale securities3.00 %2.87 %2.54 %2.21 %1.84 %
Fair value option securities5.07 %5.17 %4.40 %2.98 %2.92 %
Restricted equity securities7.31 %7.34 %5.70 %6.23 %3.30 %
Residential mortgage loans held for sale5.85 %5.79 %5.56 %5.05 %4.22 %
Loans7.03 %6.67 %5.99 %4.89 %3.92 %
Allowance for loan losses
Loans, net of allowance7.10 %6.74 %6.06 %4.94 %3.96 %
Total tax-equivalent yield on earning assets5.29 %5.06 %4.53 %3.71 %2.96 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction2.60 %1.91 %1.28 %0.63 %0.22 %
  Savings0.21 %0.10 %0.08 %0.05 %0.03 %
  Time3.27 %1.95 %1.25 %0.93 %0.68 %
Total interest-bearing deposits2.56 %1.83 %1.22 %0.63 %0.24 %
Funds purchased and repurchase agreements4.58 %3.33 %2.05 %0.72 %0.53 %
Other borrowings5.12 %4.73 %4.08 %2.33 %1.01 %
Subordinated debt6.79 %6.40 %6.16 %5.07 %4.50 %
Total cost of interest-bearing liabilities3.27 %2.43 %1.57 %0.76 %0.31 %
Tax-equivalent net interest revenue spread2.02 %2.63 %2.96 %2.95 %2.65 %
Effect of noninterest-bearing funding sources and other
0.98 %0.82 %0.58 %0.29 %0.11 %
Tax-equivalent net interest margin3.00 %3.45 %3.54 %3.24 %2.76 %

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.

22

CREDIT QUALITY INDICATORS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare$36,753 $37,247 $41,034 $41,438 $14,886 
Services4,541 8,097 16,228 27,315 15,259 
Energy20,037 127 1,399 4,164 20,924 
General business11,946 8,961 1,636 2,753 3,539 
Total commercial73,277 54,432 60,297 75,670 54,608 
Commercial real estate17,395 21,668 16,570 7,971 10,939 
Loans to individuals:
Permanent mortgage29,973 29,693 29,791 30,066 30,460 
Permanent mortgage guaranteed by U.S. government agencies
11,473 14,302 15,005 16,957 18,000 
Personal133 200 134 136 132 
Total loans to individuals41,579 44,195 44,930 47,159 48,592 
Total nonaccruing loans$132,251 $120,295 $121,797 $130,800 $114,139 
Accruing renegotiated loans guaranteed by U.S. government agencies1
— — 163,535 176,022 196,420 
Real estate and other repossessed assets4,227 12,651 14,304 29,676 22,221 
Total nonperforming assets$136,478 $132,946 $299,636 $336,498 $332,780 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$125,005 $118,644 $121,096 $143,519 $118,360 
Accruing loans 90 days past due2
$220 $76 $510 $120 $3 
Gross charge-offs$8,049 $3,667 $17,807 $1,766 $1,368 
Recoveries(1,346)(2,898)(2,301)(1,309)(2,167)
Net charge-offs (recoveries)$6,703 $769 $15,506 $457 $(799)
Provision for loan losses
$19,957 $14,525 $9,442 $1,111 $(6,158)
Provision for credit losses from off-balance sheet unfunded loan commitments
(3,003)2,024 4,609 14,060 6,005 
Provision for expected credit losses from mortgage banking activities78 (488)1,003 (66)69 
Provision for credit losses related to held-to maturity (investment) securities portfolio(32)(61)(54)(105)84 
Total provision for credit losses$17,000 $16,000 $15,000 $15,000 $— 
23

Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022
Allowance for loan losses to period end loans
1.13 %1.10 %1.04 %1.11 %1.13 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.39 %1.37 %1.31 %1.37 %1.33 %
Nonperforming assets to period end loans and repossessed assets
0.59 %0.58 %1.33 %1.54 %1.56 %
Net charge-offs (annualized) to average loans
0.12 %0.01 %0.28 %0.01 %(0.02)%
Allowance for loan losses to nonaccruing loans2
217.52 %235.36 %220.71 %212.37 %250.80 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans2
267.15 %294.74 %277.76 %261.83 %294.74 %
1    The Company adopted FASB Accounting Standards Update No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates designation of these loans as troubled debt restructurings effective January 1, 2023.
2    Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

24

SEGMENTS – UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
2Q23 vs 1Q23
2Q23 vs 2Q22
Jun. 30, 2023Mar. 31, 2023Jun. 30, 2022$ change% change$ change% change
Commercial Banking
Net interest revenue$260,099 $267,157 $166,543 $(7,058)(2.6)%$93,556 56.2 %
Fees and commissions revenue59,704 55,835 59,881 3,869 6.9 %(177)(0.3)%
Combined net interest and fee revenue319,803 322,992 226,424 (3,189)(1.0)%93,379 41.2 %
Other operating expense77,479 73,134 69,631 4,345 5.9 %7,848 11.3 %
Corporate expense allocations21,404 17,718 16,617 3,686 20.8 %4,787 28.8 %
Net income170,179 177,306 105,115 (7,127)(4.0)%65,064 61.9 %
Average assets28,170,869 28,162,934 29,269,712 7,935 — %(1,098,843)(3.8)%
Average loans19,158,984 18,750,426 17,336,841 408,558 2.2 %1,822,143 10.5 %
Average deposits14,822,093 15,861,285 18,933,766 (1,039,192)(6.6)%(4,111,673)(21.7)%
Consumer Banking
Net interest revenue$113,391 $109,381 $33,786 $4,010 3.7 %$79,605 235.6 %
Fees and commissions revenue32,361 30,581 30,101 1,780 5.8 %2,260 7.5 %
Combined net interest and fee revenue145,752 139,962 63,887 5,790 4.1 %81,865 128.1 %
Other operating expense52,340 50,198 52,660 2,142 4.3 %(320)(0.6)%
Corporate expense allocations12,318 11,622 10,120 696 6.0 %2,198 21.7 %
Net income60,332 50,683 1,239 9,649 19.0 %59,093 4,769.4 %
Average assets9,597,723 9,934,511 10,338,191 (336,788)(3.4)%(740,468)(7.2)%
Average loans1,762,568 1,747,237 1,669,830 15,331 0.9 %92,738 5.6 %
Average deposits7,986,674 8,248,541 8,876,469 (261,867)(3.2)%(889,795)(10.0)%
Wealth Management
Net interest revenue$49,352 $54,106 $37,747 $(4,754)(8.8)%$11,605 30.7 %
Fees and commissions revenue123,050 108,911 86,771 14,139 13.0 %36,279 41.8 %
Combined net interest and fee revenue172,402 163,017 124,518 9,385 5.8 %47,884 38.5 %
Other operating expense84,859 82,039 76,393 2,820 3.4 %8,466 11.1 %
Corporate expense allocations12,574 12,360 12,503 214 1.7 %71 0.6 %
Net income57,317 52,447 27,287 4,870 9.3 %30,030 110.1 %
Average assets12,949,258 11,663,096 16,902,721 1,286,162 11.0 %(3,953,463)(23.4)%
Average loans2,230,906 2,201,622 2,157,771 29,284 1.3 %73,135 3.4 %
Average deposits7,544,143 7,432,413 8,482,785 111,730 1.5 %(938,642)(11.1)%
Fiduciary assets57,873,868 57,457,925 55,972,584 415,943 0.7 %1,901,284 3.4 %
Assets under management or administration103,618,940 102,310,126 95,981,289 1,308,814 1.3 %7,637,651 8.0 %
25