EX-99 2 a20210930bokfex99.htm EX-99 Document


Exhibit 99(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $188 million or $2.74 Per Share in the Third Quarter
CEO Commentary
Steven G. Bradshaw, president and chief executive officer, stated, “The third quarter was BOKF’s second-consecutive record quarter with net income of $188 million or $2.74 per share. This quarter exhibits many of the benefits achieved from our strategy to generate revenue growth through long-term commitments and investments. Our diversified Wealth Management business, built over 30+ years, largely through organic growth, led the way with a record $153 million in total revenues, a 14% increase from their previous high set during the same quarter last year. Our alternative investment practice, which began in 2005 and provides equity and debt capital to growing businesses, experienced significant gains during the third quarter adding $31 million to pretax revenue. These types of long-term differentiators set us apart and demonstrate the force of a diversified business model.”

Bradshaw continued, “Equally impressive to our revenue generating opportunities this year has been our firm hold on expense management, which has grown at a rate just slightly above 2% over the last two trailing twelve month periods, despite significant technology and cyber-related investments.

While loan growth continues to be a challenge, and our line utilization levels at five year lows, we believe that the inevitable return to normalized levels will result in significant earnings growth potential. Our strong results today leave us well-positioned to aggressively add customers throughout our loan portfolio.”
Third Quarter 2021 Financial Highlights
•Net income was $188.3 million or $2.74 per diluted share for the third quarter of 2021 and $166.4 million or $2.40 per diluted share for the second quarter of 2021.
•Net interest revenue totaled $280.2 million, consistent with the prior quarter. Net interest margin was 2.66 percent compared to 2.60 percent in the second quarter of 2021.
•Operating revenue totaled $229.8 million, an increase of $38.4 million. Growth in much of our fee-based businesses, led by brokerage and trading and mortgage banking revenues, was partially offset by lower operating revenues from repossessed assets related to oil and gas properties sold during the quarter. In addition, we recognized a $31.1 million pre-tax gain on the sale of an alternative investment. This gain was partially offset by losses on the extinguishment of subordinated debt and sale of repossessed assets.
•Operating expense totaled $291.3 million, consistent with the prior quarter, as a $3.8 million increase in personnel expense was offset by a $3.7 million decrease in non-personnel expense, primarily due to a reduction of operating expenses related to oil and gas properties sold during the quarter.
•Period-end loans decreased $1.1 billion to $20.3 billion at September 30, 2021. Period-end Paycheck Protection Program ("PPP") loans decreased $586 million to $536 million. The remaining decrease was primarily due to paydowns of commercial energy loans and commercial real estate loans. Average loans were $20.8 billion, a $1.3 billion decrease compared to the second quarter of 2021.
•Continued improvement in credit quality metrics and lower loan balances coupled with strength in commodity prices and a continued optimistic outlook for growth in gross domestic product and the labor markets resulted in a $23.0 million negative provision for expected credit losses in the third quarter of 2021. A $35.0 million negative provision for expected credit losses was recorded in the prior quarter. The combined allowance for credit losses totaled $306 million or 1.54 percent of outstanding loans, excluding PPP loans, at September 30, 2021. The combined allowance for credit losses was $336 million or 1.66 percent of outstanding loans, excluding PPP loans, at June 30, 2021.
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•Average deposits increased $344 million to $37.8 billion and period-end deposits increased $1.1 billion to $38.5 billion, largely due to growth in commercial balances. Average demand deposits grew by $481 million and average interest bearing deposits decreased by $137 million.
•The company's common equity Tier 1 capital ratio was 12.26 percent at September 30, 2021. In addition, the company's Tier 1 capital ratio was 12.29 percent, total capital ratio was 13.38 percent, and leverage ratio was 8.77 percent at September 30, 2021. At June 30, 2021, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent.
•The company repurchased 478,141 shares of common stock at an average price of $85.00 a share in the third quarter of 2021.
•On August 23, 2021, the company redeemed the subordinated debt issued in June of 2016 at the interest rate of 5.375 percent using existing capital, saving approximately $8.0 million per year in interest payments. The repayment resulted in a realized loss on extinguishment of debt of $5.2 million.
•Commercial Banking contributed $102.7 million to net income in the third quarter of 2021, an increase of $30.1 million compared to the second quarter of 2021. The sale of an alternative investment resulted in a $31.1 million pre-tax gain, net of non-controlling interest. Combined net interest revenue and fee revenue decreased $3.7 million, largely due to a decrease of $6.0 million in production revenue from repossessed oil and gas properties, which was partially offset by a decrease in expenses on the same properties. In addition, favorable yields on deposits sold to our Funds Management unit dampened the reduction of total revenue. Average Commercial Banking loans decreased $393 million due to purposeful deleveraging by our customers. Average Commercial Banking deposits grew 5 percent to $17.9 billion in the third quarter of 2021.
•Consumer Banking contributed $12.4 million to net income in the third quarter of 2021, an increase of $10.7 million compared to the prior quarter. Combined net interest revenue and fee revenue increased $9.0 million. Net interest revenue increased $2.3 million, mainly due to favorable yields on deposits sold to our Funds Management unit. Fees and commissions revenue increased $6.7 million, largely due to mortgage production revenue. Lower mortgage banking costs largely drove a $3.0 million decrease in operating expense. Average Consumer Banking deposits were consistent with the prior quarter.
•Wealth Management contributed a record $41.4 million to net income in the third quarter of 2021, an increase of $10.3 million compared to the prior quarter. Our diverse set of investment-focused businesses including fixed income trading, private wealth, institutional wealth, financial risk management, and multiple fiduciary businesses combined to provide total net interest and fee revenues of $153.2 million, an increase of $22.0 million over the second quarter of 2021. Revenue primarily from agency residential mortgage trading activity increased $15.4 million to $77.3 million due to higher margin market opportunities. Operating expense increased $8.0 million, primarily due to incentive compensation costs related to increased trading activity. Average Wealth Management deposits decreased 6 percent to $9.1 billion in the third quarter of 2021. Assets under management were $98.8 billion, an increase of $2.2 billion compared to the prior quarter.
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Net Interest Revenue
Net interest revenue was $280.2 million for the third quarter of 2021, largely unchanged compared to the second quarter of 2021. Net interest margin was 2.66 percent compared to 2.60 percent in the prior quarter.
Average earning assets decreased $892 million compared to the second quarter of 2021. Average loan balances decreased $1.3 billion, largely due to paydowns of PPP loans. Available for sale securities increased $203 million. Average trading securities grew by $187 million. Other borrowings decreased $1.1 billion while funds purchased and repurchase agreements decreased $342 million.
The yield on average earning assets was 2.78 percent, a 3 basis point increase from the prior quarter. The loan portfolio yield increased 14 basis points to 3.68 percent, primarily due to non-use fees related to lower credit line utilization. The yield on the available for sale securities portfolio decreased 5 basis points to 1.80 percent.
Funding costs were 0.19 percent, down 2 basis points. The cost of interest-bearing deposits decreased 1 basis point to 0.13 percent. The cost of other borrowed funds increased 2 basis points to 0.30 percent. The cost of subordinated debentures decreased 24 basis points due to the redemption of $150 million in the third quarter. The benefit to net interest margin from assets funded by non-interest liabilities was 7 basis points for the third quarter of 2021, compared to 6 basis points for the prior quarter.
Operating Revenue
Growing $21.0 million over the prior quarter, fees and commissions revenue totaled $190.4 million for the third quarter of 2021. Brokerage and trading revenue increased $18.5 million to $47.9 million. Higher margin market opportunities led to an $11.1 million increase in trading revenue. Customer hedging revenue increased $5.1 million, primarily attributed to energy customers. Investment banking revenue increased $1.9 million, largely due to the timing of financial advisory fees.
Mortgage banking revenue increased $5.1 million compared to the prior quarter. While mortgage production volume decreased $28 million to $615 million, production revenue as a percentage of production volume, which includes unrealized gains and losses on our mortgage commitment pipeline and related hedges, increased to 2.50 percent. An increase in consumer activity following the pandemic shut downs resulted in a $1.6 million increase in deposit service charges.
Other gains and losses, net increased $14.6 million over the prior quarter. The sale of an alternative investment resulted in a $31.1 million gain, net of non-controlling interest, which was partially offset by a $5.2 million loss on the extinguishment of subordinated debentures and a $3.9 million loss on the sale of a repossessed oil and gas asset. The prior quarter included a $7.4 million gain on the sale of a repossessed asset.
Other revenue decreased $4.3 million as a result of lower operating revenue from repossessed oil and gas assets due to the sale of a property, which was largely offset by a reduction of expenses on the same properties.
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Operating Expense
Total operating expense remained consistent with the prior quarter at $291.3 million with a $3.8 million increase in personnel expense offset by a $3.7 million decrease in non-personnel expense.
Cash based incentive compensation increased $8.8 million, primarily in relation to increased trading revenue. Deferred compensation expense, which is largely offset by a decrease in the value of related investments included in Other gains (losses), net, decreased $2.4 million. Employee benefits expense decreased $3.3 million due to reduced payroll taxes and employee healthcare costs.
Other expense decreased $6.8 million as a result of lower operating expenses on repossessed assets. Mortgage banking costs decreased $2.2 million due to a decrease in prepayments. These decreases were partially offset by a $2.2 million increase in business promotion costs, a $2.0 million increase in data processing and communications expense and a $1.8 million increase in occupancy and equipment expense.
Loans, Deposits and Capital
Loans
Outstanding loans were $20.3 billion at September 30, 2021, a $1.1 billion decrease compared to June 30, 2021, led by lower PPP loan balances and to a lesser extent, energy and commercial real estate loans.
Outstanding commercial loan balances decreased $298 million compared to June 30, 2021, primarily due to lower energy loan balances. Although the primary source of repayment of our commercial loan portfolio is the on-going cash flow from operations of the customer's business, loans are generally governed by a borrowing base and secured by the customer’s assets.
Energy loan balances decreased $197 million to $2.8 billion or 14 percent of total loans. While commodity prices have continued to improve and stabilize, sourcing new loans sufficient to offset paydowns remains a challenge. 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 $2.8 billion at September 30, 2021, an increase of $109 million over June 30, 2021.
Services loan balances decreased $66 million to $3.3 billion or 16 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.
Healthcare sector loan balances decreased $34 million compared to the prior quarter, totaling $3.3 billion or 16 percent of total loans. Our healthcare sector loans primarily consist of $2.6 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 that serves to help diversify risks specific to a single facility.

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Commercial real estate loan balances decreased $130 million compared to June 30, 2021 and represent 20 percent of total loans at September 30, 2021, largely due to refinancing in the long term, non-recourse markets. Multifamily residential loans, decreased $89 million to $876 million at September 30, 2021. Loans secured by office facilities decreased $43 million to $1.0 billion. Loans secured by other commercial real estate properties decreased $35 million to $435 million. Loans secured by industrial facilities increased $66 million to $890 million.
PPP loan balances decreased $586 million to $536 million or 3 percent of total loans.
Loans to individuals decreased $55 million and represent 17 percent of total loans at September 30, 2021. Residential mortgage loans decreased $62 million, largely due to the re-sale of loans previously sold into GNMA mortgage pools that the Company repurchased when certain defined delinquency criteria were met. Many loans repurchased during the pandemic have since been cured and meet the re-sale qualifications. Personal loans were up $7.1 million.
Deposits
Period-end deposits totaled $38.5 billion at September 30, 2021, a $1.1 billion increase compared to June 30, 2021. Demand deposit account balances grew by $710 million and interest-bearing transaction account balances increased by $474 million. Average deposits were $37.8 billion at September 30, 2021, a $344 million increase compared to June 30, 2021. Demand deposit account balances increased $481 million primarily from deposits attributed to the Commercial Banking segment while interest-bearing deposits decreased $137 million.
Capital
The company's common equity Tier 1 capital ratio was 12.26 percent at September 30, 2021. In addition, the company's Tier 1 capital ratio was 12.29 percent, total capital ratio was 13.38 percent, and leverage ratio was 8.77 percent at September 30, 2021. We have 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, which added 20 basis points to the company's common equity tier 1 capital ratio at September 30. At June 30, 2021, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 12.01 percent, total capital ratio was 13.61 percent, and leverage ratio was 8.58 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 9.28 percent at September 30, 2021 and 9.09 percent at June 30, 2021. 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 478,141 shares of common stock at an average price of $85.00 a share in the third quarter of 2021. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.
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Credit Quality
Expected credit losses on assets carried at amortized cost are recognized over their expected 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 rate and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.
We recorded a $23.0 million negative provision for credit losses in the third quarter of 2021. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to continued strength in commodity prices and a continued optimistic outlook for economic growth in GDP and labor markets resulted in a $12.3 million decrease in the allowance for credit losses related to lending activities. Changes in loan portfolio characteristics, primarily related to improving credit quality metrics and lower loan balances resulted in a $10.1 million decrease in the allowance for credit losses related to lending activities.

Our base case reasonable and supportable forecast assumes that the COVID-19 pandemic continues to improve from the Delta variant as global virus immunity continues to be more widespread and vaccines prove to be effective against severe virus outcomes as well as new virus strains. Elevated consumer consumption and the need for inventory restocking is expected to result in GDP growth above historical averages throughout mid-year 2022, but begins to moderate thereafter. We expect a 4.1 percent increase in GDP over the next twelve months. We expect labor force participants will continue to re-enter the job market to help meet record job openings. This increase in employment helps maintain household income above its pre-pandemic trend and prevents a sharp drop-off in spending. Our forecasted civilian unemployment rate is 4.9 percent for the fourth quarter of 2021, improving to 4.5 percent by the third quarter of 2022. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of September 2021, averaging $68.38 per barrel over the next twelve months.

The probability weighting of our base case reasonable and supportable forecast decreased to 65 percent in the third quarter of 2021 compared to 70 percent in the second quarter of 2021 as the level of uncertainty in the current economic outlook worsened slightly. Our downside case, probability weighted at 25 percent, assumes additional waves and hotspots emerge in areas of the country with lower vaccination rates stemming from the impact of new virus strains, such as the current Delta variant, as the U.S. enters the fall and winter months. This results in a relatively mild recession with conditions beginning to improve in the summer of 2022.

The allowance for loan losses totaled $277 million or 1.36 percent of outstanding loans and 208 percent of nonaccruing loans at September 30, 2021, excluding residential mortgage loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $306 million or 1.50 percent of outstanding loans and 230 percent of nonaccruing loans at September 30, 2021. Excluding PPP loans, the allowance for loan losses was 1.40 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.54 percent.

At June 30, 2021, the allowance for loan losses was $312 million or 1.46 percent of outstanding loans and 183 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $336 million or 1.57 percent of outstanding loans and 197 percent of nonaccruing loans.
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Nonperforming assets totaled $349 million or 1.71 percent of outstanding loans and repossessed assets at September 30, 2021, down from $408 million or 1.90 percent at June 30, 2021. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $162 million or 0.83 percent of outstanding loans and repossessed assets at September 30, 2021, compared to $228 million or 1.14 percent at June 30, 2021. The decrease in nonperforming assets was primarily related to a decrease in nonaccruing energy loans and sales of energy-related repossessed assets during the third quarter of 2021.
Nonaccruing loans were $142 million or 0.72 percent of outstanding loans, excluding PPP loans, at September 30, 2021. Nonaccruing commercial loans totaled $81 million or 0.66 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $21 million or 0.52 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $40 million or 1.14 percent of outstanding loans to individuals.
Nonaccruing loans decreased $38 million compared to June 30, 2021, primarily due to a decrease in nonaccruing energy loans. New nonaccruing loans identified in the third quarter totaled $22 million, offset by $42 million in payments received and $10 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 $333 million at September 30, 2021, down significantly from $384 million at June 30. Potential problem energy and services loans decreased compared to the prior quarter, partially offset by an increase in potential problem commercial real estate loans.
Net charge-offs were $7.8 million or 0.16 percent of average loans on an annualized basis for the third quarter of 2021, excluding PPP loans. Net charge-offs were 0.26 percent of average loans over the last four quarters. Net charge-offs were $15.4 million or 0.30 percent of average loans on an annualized basis for the second quarter of 2021, excluding PPP loans. Gross charge-offs were $9.6 million for the third quarter compared to $18.3 million for the previous quarter. Recoveries totaled $1.8 million for the third quarter of 2021 and $2.9 million for the second quarter of 2021.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $13.3 billion at September 30, 2021, a $24 million increase compared to June 30, 2021. At September 30, 2021, the available for sale securities portfolio consisted primarily of $8.2 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2021, the available for sale securities portfolio had a net unrealized gain of $221 million compared to $297 million at June 30, 2021.
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 $9.4 million to $51 million at September 30, 2021.
The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $7.3 million during the third quarter of 2021, including a $12.9 million increase in the fair value of mortgage servicing rights, a $5.9 million decrease in the fair value of securities and derivative contracts held as an economic hedge, and $286 thousand of related net interest revenue.
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Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, October 20, 2021 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 # 13723814.
About BOK Financial Corporation
BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $99 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'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 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 September 30, 2021 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 Corporation, the financial services industry, the economy generally and the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and others, on our business, financial condition and results of operations. 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, consumer or business responses to, and ability to treat or prevent further outbreak of the COVID-19 pandemic, 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
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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(b)

BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Sept. 30, 2021June 30, 2021
ASSETS
Cash and due from banks$729,285 $678,998 
Interest-bearing cash and cash equivalents1,162,477 580,457 
Trading securities5,554,040 5,699,070 
Investment securities, net of allowance215,592 220,832 
Available for sale securities13,342,113 13,317,922 
Fair value option securities51,019 60,432 
Restricted equity securities77,542 134,885 
Residential mortgage loans held for sale176,813 200,842 
Loans:
Commercial12,175,140 12,472,907 
Commercial real estate4,116,892 4,246,992 
Paycheck protection program536,052 1,121,583 
Loans to individuals3,519,852 3,574,967 
Total loans20,347,936 21,416,449 
Allowance for loan losses(276,680)(311,890)
Loans, net of allowance20,071,256 21,104,559 
Premises and equipment, net558,126 556,400 
Receivables171,505 195,763 
Goodwill1,044,749 1,048,091 
Intangible assets, net96,186 105,694 
Mortgage servicing rights133,308 117,629 
Real estate and other repossessed assets, net28,770 57,337 
Derivative contracts, net1,901,136 1,701,443 
Cash surrender value of bank-owned life insurance403,369 401,163 
Receivable on unsettled securities sales215,755 70,954 
Other assets990,368 901,904 
TOTAL ASSETS$46,923,409 $47,154,375 
LIABILITIES AND EQUITY
Deposits:
Demand$14,090,229 $13,380,409 
Interest-bearing transaction21,753,110 21,278,719 
Savings900,497 875,456 
Time1,780,715 1,905,349 
Total deposits38,524,551 37,439,933 
Funds purchased and repurchase agreements843,273 730,183 
Other borrowings37,426 1,546,231 
Subordinated debentures131,220 276,043 
Accrued interest, taxes and expense220,266 199,014 
Due on unsettled securities purchases614,598 576,536 
Derivative contracts, net739,641 612,261 
Other liabilities415,986 419,623 
TOTAL LIABILITIES41,526,961 41,799,824 
Shareholders' equity:
Capital, surplus and retained earnings5,219,801 5,106,209 
Accumulated other comprehensive gain
169,172 226,768 
TOTAL SHAREHOLDERS' EQUITY5,388,973 5,332,977 
Non-controlling interests7,475 21,574 
TOTAL EQUITY5,396,448 5,354,551 
TOTAL LIABILITIES AND EQUITY$46,923,409 $47,154,375 

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AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
ASSETS
Interest-bearing cash and cash equivalents$682,788 $659,312 $711,047 $643,926 $553,070 
Trading securities7,617,236 7,430,217 6,963,617 6,888,189 1,834,160 
Investment securities, net of allowance218,117 221,401 237,313 251,863 258,965 
Available for sale securities13,446,095 13,243,542 13,433,767 12,949,702 12,580,850 
Fair value option securities56,307 64,864 104,662 122,329 387,784 
Restricted equity securities245,485 208,692 189,921 280,428 144,415 
Residential mortgage loans held for sale167,620 218,200 207,013 229,631 213,125 
Loans:
Commercial12,231,230 12,402,925 12,908,461 13,113,449 13,772,217 
Commercial real estate4,218,190 4,395,848 4,547,945 4,788,393 4,754,269 
Paycheck protection program792,728 1,668,047 1,741,534 1,928,665 2,092,933 
Loans to individuals3,606,460 3,700,269 3,559,067 3,617,011 3,491,044 
Total loans20,848,608 22,167,089 22,757,007 23,447,518 24,110,463 
Allowance for loan losses(306,125)(345,269)(382,734)(414,225)(441,831)
Loans, net of allowance20,542,483 21,821,820 22,374,273 23,033,293 23,668,632 
Total earning assets42,976,131 43,868,048 44,221,613 44,399,361 39,641,001 
Cash and due from banks766,688 763,393 760,691 742,432 723,826 
Derivative contracts, net
1,501,736 1,022,137 873,712 553,779 581,839 
Cash surrender value of bank-owned life insurance
401,926 401,760 399,830 397,354 394,680 
Receivable on unsettled securities sales632,539 716,700 735,482 1,094,198 4,563,301 
Other assets3,220,129 3,424,884 3,319,305 3,200,040 3,027,108 
TOTAL ASSETS$49,499,149 $50,196,922 $50,310,633 $50,387,164 $48,931,755 
LIABILITIES AND EQUITY
Deposits:
Demand$13,670,656 $13,189,954 $12,312,629 $12,136,071 $11,929,694 
Interest-bearing transaction21,435,736 21,491,145 21,433,406 20,718,390 19,752,106 
Savings888,011 872,618 789,656 737,360 707,121 
Time1,839,983 1,936,510 1,986,425 1,930,808 2,251,012 
Total deposits37,834,386 37,490,227 36,522,116 35,522,629 34,639,933 
Funds purchased and repurchase agreements
1,448,800 1,790,490 2,830,378 2,153,254 2,782,150 
Other borrowings2,546,083 3,608,369 3,392,346 5,193,656 3,382,688 
Subordinated debentures214,654 276,034 276,015 275,998 275,980 
Derivative contracts, net434,334 366,202 428,488 399,476 458,390 
Due on unsettled securities purchases957,538 701,495 915,410 957,642 1,516,880 
Other liabilities619,913 634,460 671,715 656,147 712,674 
TOTAL LIABILITIES44,055,708 44,867,277 45,036,468 45,158,802 43,768,695 
Total equity5,443,441 5,329,645 5,274,165 5,228,362 5,163,060 
TOTAL LIABILITIES AND EQUITY$49,499,149 $50,196,922 $50,310,633 $50,387,164 $48,931,755 

11

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Interest revenue$293,463 $294,659 $887,595 $949,980 
Interest expense13,236 22,909 46,639 138,766 
Net interest revenue280,227 271,750 840,956 811,214 
Provision for credit losses(23,000)— (83,000)229,092 
Net interest revenue after provision for credit losses
303,227 271,750 923,956 582,122 
Other operating revenue:
Brokerage and trading revenue47,930 69,526 98,120 182,327 
Transaction card revenue24,632 23,465 71,985 68,286 
Fiduciary and asset management revenue45,248 39,931 131,402 125,646 
Deposit service charges and fees27,429 24,286 77,499 72,462 
Mortgage banking revenue26,286 51,959 84,618 143,062 
Other revenue18,896 13,698 58,364 37,486 
Total fees and commissions190,421 222,865 521,988 629,269 
Other gains (losses), net31,091 2,044 57,661 (1,347)
Gain (loss) on derivatives, net(5,760)2,354 (14,590)42,659 
Gain (loss) on fair value option securities, net(120)(754)(3,657)53,180 
Change in fair value of mortgage servicing rights12,945 3,441 33,778 (85,800)
Gain (loss) on available for sale securities, net1,255 (12)3,152 5,571 
Total other operating revenue229,832 229,938 598,332 643,532 
Other operating expense:
Personnel175,863 179,860 520,908 512,276 
Business promotion4,939 2,633 9,837 10,783 
Charitable contributions to BOKF Foundation— — 4,000 3,000 
Professional fees and services12,436 14,074 36,777 39,183 
Net occupancy and equipment28,395 28,111 81,690 84,847 
Insurance3,712 5,848 11,992 15,984 
Data processing and communications38,371 34,751 112,256 100,436 
Printing, postage and supplies3,558 3,482 11,283 11,256 
Amortization of intangible assets4,488 5,071 13,873 15,355 
Mortgage banking costs8,962 15,803 34,031 41,946 
Other expense10,553 7,411 41,566 26,571 
Total other operating expense291,277 297,044 878,213 861,637 
Net income before taxes241,782 204,644 644,075 364,017 
Federal and state income taxes54,061 50,552 144,939 83,655 
Net income187,721 154,092 499,136 280,362 
Net income (loss) attributable to non-controlling interests(601)58 (1,667)(444)
Net income attributable to BOK Financial Corporation shareholders
$188,322 $154,034 $500,803 $280,806 
Average shares outstanding:
Basic68,359,125 69,877,866 68,768,044 69,958,944 
Diluted68,360,871 69,879,290 68,770,663 69,962,053 
Net income per share:
Basic$2.74 $2.19 $7.23 $3.99 
Diluted$2.74 $2.19 $7.23 $3.99 


12

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Capital:
Period-end shareholders' equity$5,388,973 $5,332,977 $5,239,462 $5,266,266 $5,218,787 
Risk weighted assets$33,916,456 $33,824,860 $32,623,108 $32,492,277 $31,529,826 
Risk-based capital ratios:
Common equity tier 112.26 %11.95 %12.14 %11.95 %12.07 %
Tier 112.29 %12.01 %12.21 %11.95 %12.07 %
Total capital13.38 %13.61 %13.98 %13.82 %14.05 %
Leverage ratio8.77 %8.58 %8.42 %8.28 %8.39 %
Tangible common equity ratio1
9.28 %9.09 %8.82 %9.02 %9.02 %
Common stock:
Book value per share$78.56 $77.20 $75.33 $75.62 $74.23 
Tangible book value per share$61.93 $60.50 $58.67 $58.94 $57.64 
Market value per share:
High$92.97 $93.00 $98.95 $73.07 $62.86 
Low$77.20 $83.59 $67.57 $50.09 $48.41 
Cash dividends paid$35,725 $35,925 $36,038 $36,219 $35,799 
Dividend payout ratio18.97 %21.59 %24.67 %23.48 %23.24 %
Shares outstanding, net68,596,764 69,078,458 69,557,873 69,637,600 70,305,833 
Stock buy-back program:
Shares repurchased478,141 492,994 260,000 665,100 — 
Amount$40,644 $43,797 $20,071 $42,450 $— 
Average price per share$85.00 $88.84 $77.20 $63.82 $— 
Performance ratios (quarter annualized):
Return on average assets1.51 %1.33 %1.18 %1.22 %1.25 %
Return on average equity13.78 %12.58 %11.28 %11.75 %11.89 %
Net interest margin2.66 %2.60 %2.62 %2.72 %2.81 %
Efficiency ratio61.23 %64.20 %66.26 %62.77 %59.57 %
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$5,388,973 $5,332,977 $5,239,462 $5,266,266 $5,218,787 
Less: Goodwill and intangible assets, net
1,140,935 1,153,785 1,158,676 1,161,527 1,166,615 
Tangible common equity$4,248,038 $4,179,192 $4,080,786 $4,104,739 $4,052,172 
Total assets$46,923,409 $47,154,375 $47,442,513 $46,671,088 $46,067,224 
Less: Goodwill and intangible assets, net
1,140,935 1,153,785 1,158,676 1,161,527 1,166,615 
Tangible assets$45,782,474 $46,000,590 $46,283,837 $45,509,561 $44,900,609 
Tangible common equity ratio9.28 %9.09 %8.82 %9.02 %9.02 %
13

Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Pre-provision net revenue:
Net income before taxes$241,782 $215,603 $186,690 $199,847 $204,644 
Provision for expected credit losses(23,000)(35,000)(25,000)(6,500)— 
Net income (loss) attributable to non-controlling interests(601)686 (1,752)485 58 
Pre-provision net revenue$219,383 $179,917 $163,442 $192,862 $204,586 
Other data:
Tax equivalent interest$2,217 $2,320 $2,301 $2,414 $2,457 
Net unrealized gain on available for sale securities$221,487 $297,267 $290,217 $440,814 $480,563 
Mortgage banking:
Mortgage production revenue$15,403 $10,004 $25,287 $26,662 $38,431 
Mortgage loans funded for sale$652,336 $754,893 $843,053 $998,435 $1,032,472 
Add: current period-end outstanding commitments
239,066 276,154 387,465 380,637 560,493 
Less: prior period end outstanding commitments
276,154 387,465 380,637 560,493 546,304 
Total mortgage production volume
$615,248 $643,582 $849,881 $818,579 $1,046,661 
Mortgage loan refinances to mortgage loans funded for sale
48 %48 %65 %58 %54 %
Realized margin on funded mortgage loans2.48 %2.75 %3.10 %3.78 %3.52 %
Production revenue as a percentage of production volume2.50 %1.55 %2.98 %3.26 %3.67 %
Mortgage servicing revenue$10,883 $11,215 $11,826 $12,636 $13,528 
Average outstanding principal balance of mortgage loans serviced for others
14,899,306 15,065,173 15,723,231 16,518,208 17,434,215 
Average mortgage servicing revenue rates0.29 %0.30 %0.31 %0.30 %0.31 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$(5,829)$18,764 $(27,705)$(385)$2,295 
Gain (loss) on fair value option securities, net
(120)(1,627)(1,910)68 (754)
Gain (loss) on economic hedge of mortgage servicing rights
(5,949)17,137 (29,615)(317)1,541 
Gain (loss) on changes in fair value of mortgage servicing rights
12,945 (13,041)33,874 6,276 3,441 
Gain on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue6,996 4,096 4,259 5,959 4,982 
Net interest revenue on fair value option securities2
286 341 393 550 1,565 
Total economic benefit of changes in the fair value of mortgage servicing rights, net of economic hedges$7,282 $4,437 $4,652 $6,509 $6,547 
2     Actual interest earned on fair value option securities less internal transfer-priced cost of funds.


14

QUARTERLY EARNINGS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and per share data)
Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Interest revenue$293,463 $295,893 $298,239 $319,020 $294,659 
Interest expense13,236 15,584 17,819 21,790 22,909 
Net interest revenue280,227 280,309 280,420 297,230 271,750 
Provision for credit losses(23,000)(35,000)(25,000)(6,500)— 
Net interest revenue after provision for credit losses
303,227 315,309 305,420 303,730 271,750 
Other operating revenue:
Brokerage and trading revenue47,930 29,408 20,782 39,506 69,526 
Transaction card revenue24,632 24,923 22,430 21,896 23,465 
Fiduciary and asset management revenue45,248 44,832 41,322 41,799 39,931 
Deposit service charges and fees27,429 25,861 24,209 24,343 24,286 
Mortgage banking revenue26,286 21,219 37,113 39,298 51,959 
Other revenue18,896 23,172 16,296 14,209 13,698 
Total fees and commissions190,421 169,415 162,152 181,051 222,865 
Other gains, net31,091 16,449 10,121 7,394 2,044 
Gain (loss) on derivatives, net(5,760)18,820 (27,650)(339)2,354 
Gain (loss) on fair value option securities, net
(120)(1,627)(1,910)68 (754)
Change in fair value of mortgage servicing rights
12,945 (13,041)33,874 6,276 3,441 
Gain (loss) on available for sale securities, net1,255 1,430 467 4,339 (12)
Total other operating revenue229,832 191,446 177,054 198,789 229,938 
Other operating expense:
Personnel175,863 172,035 173,010 176,198 179,860 
Business promotion4,939 2,744 2,154 3,728 2,633 
Charitable contributions to BOKF Foundation
— — 4,000 6,000 — 
Professional fees and services12,436 12,361 11,980 14,254 14,074 
Net occupancy and equipment28,395 26,633 26,662 27,875 28,111 
Insurance3,712 3,660 4,620 4,006 5,848 
Data processing and communications
38,371 36,418 37,467 35,061 34,751 
Printing, postage and supplies3,558 4,285 3,440 3,805 3,482 
Amortization of intangible assets
4,488 4,578 4,807 5,088 5,071 
Mortgage banking costs8,962 11,126 13,943 14,765 15,803 
Other expense10,553 17,312 13,701 11,892 7,411 
Total other operating expense291,277 291,152 295,784 302,672 297,044 
Net income before taxes241,782 215,603 186,690 199,847 204,644 
Federal and state income taxes54,061 48,496 42,382 45,138 50,552 
Net income187,721 167,107 144,308 154,709 154,092 
Net income (loss) attributable to non-controlling interests
(601)686 (1,752)485 58 
Net income attributable to BOK Financial Corporation shareholders
$188,322 $166,421 $146,060 $154,224 $154,034 
Average shares outstanding:
Basic68,359,125 68,815,666 69,137,375 69,489,597 69,877,866 
Diluted68,360,871 68,817,442 69,141,710 69,493,050 69,879,290 
Net income per share:
Basic$2.74 $2.40 $2.10 $2.21 $2.19 
Diluted$2.74 $2.40 $2.10 $2.21 $2.19 
15

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Commercial:     
Healthcare$3,347,641 $3,381,261 $3,290,758 $3,305,990 $3,325,790 
Services3,323,422 3,389,756 3,421,948 3,508,583 3,545,825 
Energy2,814,059 3,011,331 3,202,488 3,469,194 3,717,101 
General business2,690,018 2,690,559 2,742,590 2,793,768 2,976,990 
Total commercial12,175,140 12,472,907 12,657,784 13,077,535 13,565,706 
Commercial real estate:
Office1,030,755 1,073,346 1,094,060 1,085,257 1,099,563 
Industrial890,316 824,577 789,437 810,510 792,389 
Multifamily875,586 964,824 1,227,915 1,328,045 1,387,461 
Retail766,402 784,445 787,648 796,223 786,211 
Residential construction and land development
118,416 128,939 119,079 119,394 121,258 
Other commercial real estate435,417 470,861 485,208 559,109 506,818 
Total commercial real estate4,116,892 4,246,992 4,503,347 4,698,538 4,693,700 
Paycheck protection program536,052 1,121,583 1,848,550 1,682,310 2,097,325 
Loans to individuals:     
Residential mortgage1,747,243 1,772,627 1,797,478 1,863,003 1,849,144 
Residential mortgages guaranteed by U.S. government agencies376,986 413,806 420,051 408,687 384,247 
Personal1,395,623 1,388,534 1,306,637 1,277,447 1,213,178 
Total loans to individuals3,519,852 3,574,967 3,524,166 3,549,137 3,446,569 
Total$20,347,936 $21,416,449 $22,533,847 $23,007,520 $23,803,300 
16

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Texas:
Commercial$5,815,562 $5,690,901 $5,748,345 $5,926,534 $6,135,471 
Commercial real estate1,383,871 1,403,751 1,511,714 1,519,217 1,523,226 
Paycheck protection program115,623 342,933 537,899 501,079 614,970 
Loans to individuals901,121 885,619 848,194 855,410 794,055 
Total Texas8,216,177 8,323,204 8,646,152 8,802,240 9,067,722 
Oklahoma:
Commercial2,590,887 2,840,560 2,975,477 3,144,782 3,332,244 
Commercial real estate552,184 552,673 597,840 597,733 608,448 
Paycheck protection program192,474 242,880 468,002 413,108 487,247 
Loans to individuals2,014,099 2,063,419 2,043,705 2,052,784 2,034,576 
Total Oklahoma5,349,644 5,699,532 6,085,024 6,208,407 6,462,515 
Colorado:
Commercial1,874,613 1,904,182 1,910,826 1,929,320 1,993,364 
Commercial real estate526,653 656,521 777,786 879,648 893,626 
Paycheck protection program140,470 299,712 436,540 377,111 494,910 
Loans to individuals249,298 262,796 264,759 264,295 257,832 
Total Colorado2,791,034 3,123,211 3,389,911 3,450,374 3,639,732 
Arizona:
Commercial1,194,801 1,239,270 1,207,089 1,219,072 1,218,769 
Commercial real estate734,174 705,497 667,766 726,111 702,291 
Paycheck protection program42,815 104,946 208,481 211,725 272,114 
Loans to individuals182,506 178,481 179,031 177,948 166,203 
Total Arizona2,154,296 2,228,194 2,262,367 2,334,856 2,359,377 
Kansas/Missouri:
Commercial336,414 388,291 421,974 455,914 493,606 
Commercial real estate408,001 406,055 395,590 366,821 352,663 
Paycheck protection program6,920 41,954 60,741 56,011 80,230 
Loans to individuals100,920 103,092 104,954 105,995 96,598 
Total Kansas/Missouri852,255 939,392 983,259 984,741 1,023,097 
New Mexico:
Commercial287,695 304,804 307,395 303,833 288,374 
Commercial real estate437,302 437,996 448,298 473,204 473,697 
Paycheck protection program31,444 86,716 124,059 109,881 133,244 
Loans to individuals66,651 68,177 70,491 75,665 79,890 
Total New Mexico823,092 897,693 950,243 962,583 975,205 
Arkansas:
Commercial75,168 104,899 86,678 98,080 103,878 
Commercial real estate74,707 84,499 104,353 135,804 139,749 
Paycheck protection program6,306 2,442 12,828 13,395 14,610 
Loans to individuals5,257 13,383 13,032 17,040 17,415 
Total Arkansas161,438 205,223 216,891 264,319 275,652 
TOTAL BOK FINANCIAL$20,347,936 $21,416,449 $22,533,847 $23,007,520 $23,803,300 
Loans attributed to a principal market may not always represent the location of the borrower or the collateral.
17

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Oklahoma:
    Demand$5,080,162 $4,985,542 $4,823,436 $4,329,205 $4,493,978 
    Interest-bearing:
       Transaction11,692,679 12,065,844 12,828,070 12,603,658 12,586,449 
       Savings510,906 500,344 487,862 420,996 401,062 
       Time1,039,866 1,139,980 1,197,517 1,134,453 1,081,176 
    Total interest-bearing13,243,451 13,706,168 14,513,449 14,159,107 14,068,687 
Total Oklahoma18,323,613 18,691,710 19,336,885 18,488,312 18,562,665 
Texas:
    Demand3,987,503 3,752,790 3,592,969 3,449,882 3,152,106 
    Interest-bearing:
       Transaction4,985,465 4,335,113 4,257,234 3,800,427 3,482,555 
       Savings165,043 160,805 154,406 139,173 136,787 
       Time337,389 346,577 368,086 383,062 438,337 
    Total interest-bearing5,487,897 4,842,495 4,779,726 4,322,662 4,057,679 
Total Texas9,475,400 8,595,285 8,372,695 7,772,544 7,209,785 
Colorado:
    Demand2,158,596 1,991,343 2,115,354 2,168,404 2,057,603 
    Interest-bearing:
       Transaction2,337,354 2,159,819 2,100,135 2,170,485 1,861,763 
       Savings79,873 73,990 73,446 69,384 68,230 
       Time184,002 193,787 204,973 208,778 226,780 
    Total interest-bearing2,601,229 2,427,596 2,378,554 2,448,647 2,156,773 
Total Colorado4,759,825 4,418,939 4,493,908 4,617,051 4,214,376 
New Mexico:
    Demand1,222,895 1,197,412 1,131,713 941,074 964,908 
    Interest-bearing:
       Transaction837,630 723,757 736,923 733,007 713,418 
       Savings107,615 105,837 103,591 91,646 85,463 
       Time168,879 174,665 181,863 186,307 200,525 
    Total interest-bearing1,114,124 1,004,259 1,022,377 1,010,960 999,406 
Total New Mexico2,337,019 2,201,671 2,154,090 1,952,034 1,964,314 
Arizona:
    Demand1,110,884 943,511 915,439 905,201 928,671 
    Interest-bearing:
       Transaction784,614 820,901 835,795 768,220 771,319 
       Savings16,468 13,496 13,235 12,174 11,498 
       Time30,862 30,012 30,997 32,721 36,929 
    Total interest-bearing831,944 864,409 880,027 813,115 819,746 
Total Arizona1,942,828 1,807,920 1,795,466 1,718,316 1,748,417 
18

Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Kansas/Missouri:
    Demand488,595 463,339 478,370 426,738 405,360 
    Interest-bearing:
       Transaction965,757 978,160 991,510 960,237 616,797 
       Savings17,303 17,539 18,686 16,286 15,520 
       Time13,040 13,509 13,898 14,610 16,430 
    Total interest-bearing996,100 1,009,208 1,024,094 991,133 648,747 
Total Kansas/Missouri1,484,695 1,472,547 1,502,464 1,417,871 1,054,107 
Arkansas:
    Demand41,594 46,472 45,889 45,834 44,712 
    Interest-bearing:
       Transaction149,611 195,125 141,207 122,388 164,439 
       Savings3,289 3,445 3,000 2,333 2,389 
       Time6,677 6,819 7,022 7,197 7,796 
    Total interest-bearing159,577 205,389 151,229 131,918 174,624 
Total Arkansas201,171 251,861 197,118 177,752 219,336 
TOTAL BOK FINANCIAL$38,524,551 $37,439,933 $37,852,626 $36,143,880 $34,973,000 

19

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents0.14 %0.10 %0.10 %0.10 %0.12 %
Trading securities2.04 %1.95 %2.06 %2.02 %1.92 %
Investment securities, net of allowance5.02 %5.01 %4.88 %4.88 %4.85 %
Available for sale securities1.80 %1.85 %1.84 %1.98 %2.11 %
Fair value option securities2.62 %2.60 %1.95 %2.27 %1.92 %
Restricted equity securities2.55 %3.36 %2.86 %3.25 %2.53 %
Residential mortgage loans held for sale3.06 %2.91 %2.71 %2.75 %3.01 %
Loans3.68 %3.54 %3.55 %3.68 %3.60 %
Allowance for loan losses
Loans, net of allowance3.73 %3.60 %3.62 %3.75 %3.67 %
Total tax-equivalent yield on earning assets2.78 %2.75 %2.78 %2.92 %3.04 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction0.09 %0.10 %0.12 %0.14 %0.17 %
  Savings0.04 %0.04 %0.04 %0.05 %0.05 %
  Time0.55 %0.58 %0.70 %0.89 %1.13 %
Total interest-bearing deposits0.13 %0.14 %0.17 %0.19 %0.26 %
Funds purchased and repurchase agreements0.20 %0.16 %0.19 %0.28 %0.17 %
Other borrowings0.37 %0.34 %0.39 %0.42 %0.43 %
Subordinated debt4.63 %4.87 %4.92 %4.87 %4.89 %
Total cost of interest-bearing liabilities0.19 %0.21 %0.24 %0.28 %0.31 %
Tax-equivalent net interest revenue spread2.59 %2.54 %2.54 %2.64 %2.73 %
Effect of noninterest-bearing funding sources and other
0.07 %0.06 %0.08 %0.08 %0.08 %
Tax-equivalent net interest margin2.66 %2.60 %2.62 %2.72 %2.81 %

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.

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CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy$45,500 $70,341 $101,800 $125,059 $126,816 
Services25,714 29,913 28,033 25,598 25,817 
Healthcare509 527 3,187 3,645 3,645 
General business8,951 11,823 14,053 12,857 13,675 
Total commercial80,674 112,604 147,073 167,159 169,953 
Commercial real estate21,223 26,123 27,243 27,246 12,952 
Loans to individuals:
Permanent mortgage30,674 31,473 32,884 32,228 31,599 
Permanent mortgage guaranteed by U.S. government agencies
9,188 9,207 8,564 7,741 6,397 
Personal188 229 255 319 252 
Total loans to individuals40,050 40,909 41,703 40,288 38,248 
Total nonaccruing loans$141,947 $179,636 $216,019 $234,693 $221,153 
Accruing renegotiated loans guaranteed by U.S. government agencies
178,554 171,324 154,591 151,775 142,770 
Real estate and other repossessed assets28,770 57,337 70,911 90,526 52,847 
Total nonperforming assets$349,271 $408,297 $441,521 $476,994 $416,770 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$161,529 $227,766 $278,366 $317,478 $267,603 
Accruing loans 90 days past due1
$223 $252 $395 $10,369 $7,684 
Gross charge-offs$9,584 $18,304 $16,905 $18,251 $26,661 
Recoveries(1,769)(2,856)(2,437)(1,592)(4,232)
Net charge-offs$7,815 $15,448 $14,468 $16,659 $22,429 
Provision for loan losses
$(27,395)$(25,064)$(21,770)$(14,478)$6,609 
Provision for credit losses from off-balance sheet unfunded loan commitments
4,952 (8,590)(4,044)8,952 (4,950)
Provision for expected credit losses from mortgage banking activities(534)(1,222)885 (923)(770)
Provision for credit losses related to held-to maturity (investment) securities portfolio(23)(124)(71)(51)(889)
Total provision for credit losses$(23,000)$(35,000)$(25,000)$(6,500)$— 
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Three Months Ended
Sept. 30, 2021June 30, 2021Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020
Allowance for loan losses to period end loans
1.36 %1.46 %1.56 %1.69 %1.76 %
Allowance for loan losses to period end loans excluding PPP loans2
1.40 %1.54 %1.70 %1.82 %1.93 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.50 %1.57 %1.71 %1.85 %1.88 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans2
1.54 %1.66 %1.86 %2.00 %2.06 %
Nonperforming assets to period end loans and repossessed assets
1.71 %1.90 %1.95 %2.07 %1.75 %
Net charge-offs (annualized) to average loans
0.15 %0.28 %0.25 %0.28 %0.37 %
Net charge-offs (annualized) to average loans excluding PPP loans2
0.16 %0.30 %0.28 %0.31 %0.41 %
Allowance for loan losses to nonaccruing loans1
208.41 %183.00 %169.87 %171.24 %195.47 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1
230.43 %197.25 %185.72 %187.51 %208.49 %
1    Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
2    Metric meaningful due to the unique characteristics and short-term nature of the PPP loans.
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SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended3Q21 vs 2Q213Q21 vs 3Q20
Sept. 30, 2021June 30, 2021 Sept. 30, 2020$ change% change$ change% change
Commercial Banking
Net interest revenue$134,104 $130,901 $149,946 $3,203 2.4 %$(15,842)(10.6)%
Fees and commissions revenue56,452 63,368 50,085 (6,916)(10.9)%6,367 12.7 %
Combined net interest and fee revenue190,556 194,269 200,031 (3,713)(1.9)%(9,475)(4.7)%
Other operating expense68,301 71,351 66,846 (3,050)(4.3)%1,455 2.2 %
Corporate expense allocations11,769 12,512 5,172 (743)(5.9)%6,597 127.6 %
Net income102,694 72,632 75,097 30,062 41.4 %27,597 36.7 %
Average assets28,474,182 28,160,594 28,000,183 313,588 1.1 %473,999 1.7 %
Average loans16,588,875 16,981,888 18,677,401 (393,013)(2.3)%(2,088,526)(11.2)%
Average deposits17,881,673 17,049,772 15,375,450 831,901 4.9 %2,506,223 16.3 %
Consumer Banking
Net interest revenue$27,222 $24,945 $33,130 $2,277 9.1 %$(5,908)(17.8)%
Fees and commissions revenue44,405 37,714 67,974 6,691 17.7 %(23,569)(34.7)%
Combined net interest and fee revenue71,627 62,659 101,104 8,968 14.3 %(29,477)(29.2)%
Other operating expense49,483 52,453 59,155 (2,970)(5.7)%(9,672)(16.4)%
Corporate expense allocations11,516 11,599 10,691 (83)(0.7)%825 7.7 %
Net income12,432 1,698 26,855 10,734 632.2 %(14,423)(53.7)%
Average assets10,083,593 10,087,488 9,898,112 (3,895)— %185,481 1.9 %
Average loans1,763,705 1,786,242 1,825,865 (22,537)(1.3)%(62,160)(3.4)%
Average deposits8,516,942 8,469,043 7,940,973 47,899 0.6 %575,969 7.3 %
Wealth Management
Net interest revenue$55,196 $52,293 $22,985 $2,903 5.6 %$32,211 140.1 %
Fees and commissions revenue97,966 78,841 111,655 19,125 24.3 %(13,689)(12.3)%
Combined net interest and fee revenue153,162 131,134 134,640 22,028 16.8 %18,522 13.8 %
Other operating expense87,417 79,429 82,868 7,988 10.1 %4,549 5.5 %
Corporate expense allocations10,101 10,343 9,397 (242)(2.3)%704 7.5 %
Net income41,406 31,061 31,212 10,345 33.3 %10,194 32.7 %
Average assets19,109,700 19,201,041 16,204,510 (91,341)(0.5)%2,905,190 17.9 %
Average loans1,971,380 1,968,513 1,777,008 2,867 0.1 %194,372 10.9 %
Average deposits9,120,446 9,695,319 9,090,116 (574,873)(5.9)%30,330 0.3 %
Fiduciary assets60,497,576 58,654,788 48,887,513 1,842,788 3.1 %11,610,063 23.7 %
Assets under management or administration98,842,789 96,632,748 82,419,932 2,210,041 2.3 %16,422,857 19.9 %


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