EX-99.1 2 a20220930bokfex99.htm EX-99.1 Document


Exhibit 99.1(a)
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                                                    NASD: BOKF
BOK Financial Corporation Reports Quarterly Earnings of $157 million or $2.32 Per Share in the Third Quarter
CEO Commentary
Stacy Kymes, president and chief executive officer, stated, “The third quarter was another very strong quarter as we sustain our momentum around top-line revenue growth. I am proud to see the hard work of our team show up in consistent loan growth, net interest margin improvement and non-interest revenue growth while our efficiency ratio has moved well below 60 percent. Although our asset quality trends remain unsustainably good, we added to our loan loss reserves this quarter in recognition of the loan growth and less certain economic forecast. While the longer-term economic outlook is less certain, we remain optimistic about our ability to grow earnings from current levels in the near-term."
Third Quarter 2022 Financial Highlights
(Unless indicated otherwise, all comparisons are to the prior quarter)
•Net income was $156.5 million or $2.32 per diluted share for the third quarter of 2022 and $132.8 million or $1.96 per diluted share for the second quarter of 2022.
•Net interest revenue totaled $316.3 million, an increase of $42.3 million. Net interest margin was 3.24 percent compared to 2.76 percent. In response to rising inflation, the Federal Reserve increased the federal funds rate another 150 basis points in the third quarter to a total of 300 basis points since the beginning of 2022. The resulting impact on market interest rates has increased net interest margin.
•Fees and commissions revenue increased $19.3 million to $192.6 million. Brokerage and trading revenue increased $17.0 million, largely due to higher margins on trading activity driven by favorable market conditions and increased market volatility. Additionally, the third quarter was a record quarter for investment banking revenue.
•The net cost of the changes in fair value of mortgage servicing rights and related economic hedges was $4.8 million for the third quarter of 2022 compared to a net benefit of $1.9 million for the second quarter of 2022, due to increased market volatility in the third quarter.
•Operating expense increased $21.1 million to $294.8 million. Personnel expense increased $15.4 million, largely driven by higher incentive compensation expense. Non-personnel expense increased $5.7 million, primarily related to project-related professional fees and seasonal occupancy costs.
•Period-end loans increased $499 million to $21.8 billion at September 30, 2022. Of this increase, commercial real estate loans grew $368 million, while loans to individuals increased $125 million. In addition, unfunded loan commitments grew by $1.1 billion. Average outstanding loan balances were $21.6 billion, a $542 million increase.
•A $15.0 million provision for expected credit losses was recorded in the third quarter of 2022, primarily due to loan growth and increased uncertainty in the economic outlook, partially offset by improving credit quality metrics. No provision for expected credit losses was necessary for the second quarter of 2022. The combined allowance for credit losses totaled $298 million or 1.37 percent of outstanding loans at September 30, 2022. The combined allowance for credit losses was $283 million or 1.33 percent of outstanding loans at June 30, 2022.
•Average deposits decreased $1.5 billion to $37.0 billion and period-end deposits decreased $2.2 billion to $36.4 billion, consistent with industry trends as customers redeploy resources following the savings trend during the height of the pandemic. Average interest-bearing deposits decreased $1.4 billion and average demand deposits were reduced by $97 million.
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•The company's common equity Tier 1 capital ratio was 11.80 percent at September 30, 2022. In addition, the company's Tier 1 capital ratio was 11.82 percent, total capital ratio was 12.81 percent, and leverage ratio was 9.76 percent at September 30, 2022. At June 30, 2022, the company's common equity Tier 1 capital ratio was 11.61 percent, Tier 1 capital ratio was 11.63 percent, total capital ratio was 12.59 percent, and leverage ratio was 9.12 percent.
•The company repurchased 548,034 shares of common stock at an average price of $91.20 a share in the third quarter of 2022.
Third Quarter 2022 Segment Highlights
•Commercial Banking contributed $132.9 million to net income in the third quarter of 2022, an increase of $28.1 million. Combined net interest revenue and fee revenue increased $38.6 million due to loan growth and increased spreads on deposits sold to the Funds Management unit. Net loans recovered were $976 thousand less than the prior quarter. Personnel expense increased $2.8 million, driven by incentive compensation costs associated with growth in loans. Linked quarter performance also improved due to a $5.8 million write-down of a repossessed equity interest in a midstream energy entity in the prior quarter. Average loans increased $568 million or 3 percent to $17.9 billion. Average deposits decreased $967 million or 5 percent to $18.0 billion.
•Consumer Banking contributed $3.0 million to net income in the third quarter of 2022, an increase of $1.7 million over the prior quarter. The net cost of the changes in fair value of mortgage servicing rights and related economic hedges was $4.8 million for the third quarter of 2022 compared to a net benefit of $1.9 million for the second quarter of 2022. Combined net interest revenue and fee revenue increased $10.3 million, primarily due to an increase in the spread on deposits sold to our Funds Management unit. Fees and commissions revenue and operating expense were consistent with the prior quarter. Both average loans and average deposits were also relatively consistent with the previous quarter.

•Wealth Management contributed $41.8 million to net income in the third quarter of 2022, an increase of $14.5 million over the second quarter of 2022. Our diverse set of investment-focused businesses, which include trading in fixed income securities and other financial instruments and providing wealth management services to institutional and private wealth clients, produced total net interest and fee revenues of $146.7 million, an increase of $22.2 million. Total revenue from trading activities increased $5.0 million, primarily due to higher margins on residential mortgage-backed securities trading activity. Investment banking revenue grew $3.2 million due to increased underwriting fees and financial advisory fees. Other revenue increased $8.3 million, largely due to higher derivative margin use fees. Operating expense increased $2.8 million, mainly due to increased volume-driven incentive compensation costs. Average loans were consistent with the prior quarter. Average deposits decreased $484 million or 6 percent to $8.0 billion. Assets under management were $95.4 billion, a decrease of $580 million.
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Net Interest Revenue
Net interest revenue was $316.3 million for the third quarter of 2022 compared to $274.0 million for the second quarter of 2022. Net interest margin was 3.24 percent compared to 2.76 percent. In response to rising inflation, the Federal Reserve increased the federal funds rate 150 basis points in the third quarter bringing the year-to-date total rate increases to 300 basis points. The resulting impact on market interest rates has increased net interest margin as our earning assets, led by our significant percentage of variable-rate commercial loans, reprice at a higher rate and faster pace than our interest-bearing liabilities.
Average earning assets decreased $534 million. Average trading securities decreased $989 million in response to lower origination volumes in the residential mortgage industry driven by increases in interest rates. Average loan balances increased $542 million, largely due to growth in commercial real estate loans and loans to individuals. Average available for sale securities decreased $2.0 billion while investment securities increased $2.0 billion. Late in the second quarter, $2.4 billion in U.S. government agency mortgage-backed securities were transferred from available for sale to investment securities to limit the effect of future rate increases on the tangible common equity ratio. Average interest bearing cash and cash equivalents decreased $95 million. Average interest-bearing deposits decreased $2.2 billion as customers redeploy resources following the height of the pandemic. Average funds purchased and repurchase agreements decreased $423 million while other borrowings increased $228 million.
The yield on average earning assets was 3.71 percent, up 75 basis points. The loan portfolio yield increased 97 basis points to 4.89 percent while the yield on trading securities was up 72 basis points to 2.72 percent. The yield on the available for sale securities portfolio increased 37 basis points to 2.21 percent. The yield on investment securities decreased 93 basis points due to the transfer of securities from the available for sale portfolio to the investment portfolio. The yield on interest-bearing cash and cash equivalents increased 104 basis points.
Funding costs were 0.76 percent, a 45 basis point increase. The cost of interest-bearing deposits increased 39 basis points to 0.63 percent. The cost of other borrowings was up 132 basis points to 2.33 percent while the cost of funds purchased and repurchase agreements increased 19 basis points to 0.72 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 29 basis points, an increase of 18 basis points.
Operating Revenue
Fees and commissions revenue totaled $192.6 million for the third quarter of 2022, up $19.3 million, led by a $17.0 million increase in brokerage and trading revenue. Trading revenue increased $14.5 million, largely due to higher margins on residential mortgage-backed securities trading activity driven by favorable market conditions and increased market volatility. Total investment banking revenue increased $2.4 million, primarily due to growth in the size and number of municipal bond transactions.
Mortgage banking revenue remained consistent with the prior quarter with growth in mortgage servicing revenue offsetting a reduction in mortgage production revenue. Two acquisitions of mortgage servicing rights at the end of the second quarter led to an increase in mortgage servicing revenue of $1.8 million. Mortgage production revenue decreased $1.9 million as rising mortgage interest rates and inventory constraints continue to place pressure on mortgage loan originations. Mortgage production volume decreased $76.0 million to $230.0 million. Refinance activity as percentage of total production declined to 10 percent, the lowest in recent history.
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All other fee revenue was relatively consistent with the prior quarter, increasing $2.4 million in total.
Other gains and losses, net, increased $8.6 million, primarily driven by a write-down of a repossessed equity interest in a midstream entity in the prior quarter combined with a change in the value of deferred compensation investments, which are held to offset the cost of various employee benefit programs.
Operating Expense
Total operating expense was $294.8 million for the third quarter of 2022, an increase of $21.1 million compared to the second quarter of 2022.
Personnel expense increased $15.4 million. Deferred compensation expense increased $6.0 million and share-based incentive compensation expense increased $4.3 million. These expenses are influenced by market valuations and forecasted annual results compared to a peer group, both of which can be volatile. Strong sales results in our Commercial and Wealth segments led to a $4.9 million increase in cash-based incentive compensation.
Non-personnel expense was $124.4 million, up $5.7 million. Higher seasonal operating costs on leases led to a $1.8 million increase in net occupancy and equipment expense while project-related professional fees led to a $1.6 million increase in professional fees and services.
Loans, Deposits and Capital
Loans
Outstanding loans were $21.8 billion at September 30, 2022, growing $499 million over June 30, 2022, due to growth in commercial real estate loans and loans to individuals. Unfunded loan commitments also were up $1.1 billion over the second quarter.
Outstanding commercial loan balances were largely unchanged compared to the prior quarter. Growth in healthcare and general business loans were offset by a decrease in services and energy loan balances.
Healthcare sector loan balances increased $130 million, totaling $3.8 billion or 18 percent of total loans. Our healthcare sector loans primarily consist of $3.1 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.
General business loans increased $61 million to $3.1 billion or 14 percent of total loans. General business loans include $1.8 billion of wholesale/retail loans and $1.3 billion of loans from other commercial industries.
Services sector loan balances decreased $141 million to $3.3 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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Energy loan balances decreased $21 million to $3.4 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 72 percent of committed production loans are secured by properties primarily producing oil. The remaining 28 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $3.5 billion at September 30, 2022, an increase of $107 million over June 30, 2022.
Commercial real estate loan balances grew $368 million and represent 21 percent of total loans. Loans secured by multifamily residential properties increased $248 million to 1.1 billion. Loans secured by industrial facilities increased $150 million to $1.1 billion. This growth was partially offset by a $20 million decrease in construction and land development loans and a $14 million decrease in loans secured by office buildings.
PPP loan balances decreased $23 million to $20 million, or less than 1 percent of the total loans balance.
Loans to individuals increased $125 million and represent 17 percent of total loans. Total residential mortgage loans increased $36 million while personal loans increased $90 million.
Deposits
Period-end deposits totaled $36.4 billion at September 30, 2022, a $2.2 billion decrease, consistent with industry trends as customers redeploy cash resources following the savings trend during the pandemic. Interest-bearing transaction account balances decreased $1.5 billion while demand deposits decreased $735 million. Period-end Commercial Banking deposits decreased $1.8 billion, Wealth Management deposits decreased $237 million, and Consumer Banking deposits were largely unchanged. Average deposits were $37.0 billion at September 30, 2022, a $1.5 billion decrease. Average interest-bearing transaction account balances decreased $1.5 billion and average demand deposit account balances decreased $97 million.
Capital
The company's common equity Tier 1 capital ratio was 11.80 percent at September 30, 2022. In addition, the company's Tier 1 capital ratio was 11.82 percent, total capital ratio was 12.81 percent, and leverage ratio was 9.76 percent at September 30, 2022. 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 9 basis points to the company's common equity tier 1 capital ratio at September 30, 2022. At June 30, 2022, the company's common equity Tier 1 capital ratio was 11.61 percent, Tier 1 capital ratio was 11.63 percent, total capital ratio was 12.59 percent, and leverage ratio was 9.12 percent.
The company's tangible common equity ratio, a non-GAAP measure, was 7.96 percent at September 30, 2022 and 8.16 percent at June 30, 2022. 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 548,034 shares of common stock at an average price of $91.20 a share in the third quarter of 2022. 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 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 and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.
A $15.0 million provision for credit losses was necessary for the third quarter of 2022, primarily related to strong loan growth in loans and unfunded commitments during the quarter. The level of uncertainty in the economic outlook of our reasonable and supportable forecast continued to increase, offset by the impact of a sustained trend of improving credit quality metrics.
Our base case reasonable and supportable forecast assumes inflation peaks in the third quarter of 2022 and begins to slowly normalize thereafter. We expect the Russian-Ukraine conflict remains isolated and conditions improve in the fourth quarter of 2022. GDP is projected to grow by 1.4 percent over the next twelve months as labor force participants will continue to re-enter the job market to help meet record job openings. Inflation pressures cause modest declines in real household income compared to pre-pandemic levels, resulting in below-trend GDP growth. Our forecasted civilian unemployment rate is 3.9 percent for the fourth quarter of 2022, increasing to 4.1 percent by the third quarter of 2023. Our base case also assumes the Federal Reserve increases federal funds rates resulting in a target range of 4.00 percent to 4.25 percent by December 2022. No additional rate increases in 2023 are anticipated. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of September 2022, averaging $81.86 per barrel over the next twelve months.
The probability weighting of our base case reasonable and supportable forecast decreased to 50 percent in the third quarter of 2022 compared to 55 percent in the second quarter of 2022 as the level of uncertainty in economic forecasts continued to increase. Our downside case, probability weighted at 40 percent, assumes the Russia-Ukraine conflict persists through the third quarter of 2023, but does remain isolated. Higher levels of inflation force the Federal Reserve to adopt a more aggressive monetary policy to combat the inflationary environment. This results in a federal funds target range of 4.75 percent to 5.00 percent by September 2023. The United States economy is pushed into a recession, with a contraction in economic activity and a sharp increase in the unemployment rate from 4.5 percent in the fourth quarter of 2022 to 6.4 percent in the third quarter of 2023. In this scenario, real GDP is expected to contract 1.3 percent over the next four quarters. WTI oil prices are projected to average $72.58 per barrel over the next twelve months, peaking at $92.87 in the fourth quarter of 2022 and falling 39 percent over the following three quarters.
Nonperforming assets totaled $336 million or 1.54 percent of outstanding loans and repossessed assets at September 30, 2022, compared to $333 million or 1.56 percent at June 30, 2022. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $144 million or 0.67 percent of outstanding loans and repossessed assets at September 30, 2022, compared to $118 million or 0.56 percent at June 30, 2022.
Nonaccruing loans were $131 million or 0.60 percent of outstanding loans at September 30, 2022. Nonaccruing commercial loans totaled $76 million or 0.56 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $8.0 million or 0.18 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $47 million or 1.28 percent of outstanding loans to individuals.
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Nonaccruing loans increased $17 million over June 30, 2022, primarily related to nonaccruing healthcare and services loans, partially offset by a decrease in nonaccruing energy loans. New nonaccruing loans identified in the third quarter totaled $54 million, offset by $24 million in payments received, $8.2 million in foreclosures and $1.8 million in gross 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 $95 million at September 30, 2022, down from $131 million at June 30. Potential problem healthcare loans decreased $27 million and potential problem services loans decreased $10 million.
At September 30, 2022, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $298 million or 1.37 percent of outstanding loans and 262 percent of nonaccruing loans. The allowance for loan losses totaled $242 million or 1.11 percent of outstanding loans and 212 percent of nonaccruing loans. At June 30, 2022, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $283 million or 1.33 percent of outstanding loans and 295 percent of nonaccruing loans. The allowance for loan losses was $241 million or 1.13 percent of outstanding loans and 251 percent of nonaccruing loans. Allowance percentages referenced above omit residential mortgage loans guaranteed by U.S. government agencies.
Gross charge-offs were $1.8 million for the third quarter compared to $1.4 million for the second quarter of 2022. Recoveries totaled $1.3 million for the third quarter of 2022 and $2.2 million for the prior quarter. Net charge-offs were $457 thousand or 0.01 percent of average loans on an annualized basis in the third quarter compared to net recoveries of $799 thousand or (0.02) percent of average loans on an annualized basis in the second quarter. Net charge-offs were 0.02 percent of average loans over the last four quarters.
Securities and Derivatives
The fair value of the available for sale securities portfolio totaled $10.0 billion at September 30, 2022, a $112 million decrease compared to June 30, 2022. At September 30, 2022, the available for sale securities portfolio consisted primarily of $4.9 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $4.0 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At September 30, 2022, the available for sale securities portfolio had a net unrealized loss of $936 million compared to $523 million at June 30, 2022.
We hold an inventory of trading securities in support of sales to a variety of customers. At September 30, 2022, the trading securities portfolio totaled $2.2 billion compared to $2.9 billion at June 30, 2022.
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 $4.0 million to $34 million at September 30, 2022.
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Derivative contracts are carried at fair value. At September 30, 2022, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $1.5 billion compared to $2.0 billion at June 30, 2022. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $1.5 billion at September 30, 2022 and $2.0 billion at June 30, 2022.
The net cost of the changes in the fair value of mortgage servicing rights and related economic hedges was $4.8 million during the third quarter of 2022, including a $16.6 million increase in the fair value of mortgage servicing rights, $21.4 million decrease in the fair value of securities and derivative contracts held as an economic hedge, and $29 thousand of related net interest revenue.


Conference Call and Webcast
The company will hold a conference call at 9 a.m. Central time on Wednesday, October 26, 2022 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 1-877-407-4018 and referencing conference ID # 13733709.
About BOK Financial Corporation
BOK Financial Corporation is a $44 billion regional financial services company headquartered in Tulsa, Oklahoma with $95 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, 2022 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, 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 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)
Sep. 30, 2022June 30, 2022
ASSETS
Cash and due from banks$804,110 $1,313,563 
Interest-bearing cash and cash equivalents804,799 723,787 
Trading securities2,194,618 2,859,444 
Investment securities, net of allowance2,572,360 2,637,345 
Available for sale securities10,040,894 10,152,663 
Fair value option securities33,966 37,927 
Restricted equity securities100,356 95,130 
Residential mortgage loans held for sale148,121 182,726 
Loans:
Commercial13,607,686 13,578,697 
Commercial real estate4,473,911 4,106,148 
Paycheck protection program20,233 43,140 
Loans to individuals3,688,627 3,563,163 
Total loans21,790,457 21,291,148 
Allowance for loan losses(241,768)(241,114)
Loans, net of allowance21,548,689 21,050,034 
Premises and equipment, net569,379 573,605 
Receivables200,343 176,672 
Goodwill1,044,749 1,044,749 
Intangible assets, net79,833 83,744 
Mortgage servicing rights283,806 270,312 
Real estate and other repossessed assets, net29,676 22,221 
Derivative contracts, net1,693,742 1,992,977 
Cash surrender value of bank-owned life insurance407,722 409,937 
Receivable on unsettled securities sales49,089 60,168 
Other assets1,039,194 1,690,068 
TOTAL ASSETS$43,645,446 $45,377,072 
LIABILITIES AND EQUITY
Deposits:
Demand$14,985,115 $15,720,296 
Interest-bearing transaction19,000,023 20,544,199 
Savings971,634 984,824 
Time1,459,143 1,369,599 
Total deposits36,415,915 38,618,918 
Funds purchased and repurchase agreements626,952 677,030 
Other borrowings234,933 35,505 
Subordinated debentures131,168 131,223 
Accrued interest, taxes and expense212,342 211,419 
Due on unsettled securities purchases205,388 297,352 
Derivative contracts, net821,275 214,576 
Other liabilities483,165 449,507 
TOTAL LIABILITIES39,131,138 40,635,530 
Shareholders' equity:
Capital, surplus and retained earnings5,414,879 5,339,967 
Accumulated other comprehensive loss(904,945)(602,628)
TOTAL SHAREHOLDERS' EQUITY4,509,934 4,737,339 
Non-controlling interests4,374 4,203 
TOTAL EQUITY4,514,308 4,741,542 
TOTAL LIABILITIES AND EQUITY$43,645,446 $45,377,072 

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AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
ASSETS
Interest-bearing cash and cash equivalents$748,263 $843,619 $1,050,409 $1,208,552 $682,788 
Trading securities3,178,068 4,166,954 8,537,390 9,260,778 7,617,236 
Investment securities, net of allowance2,593,989 610,983 195,198 213,188 218,117 
Available for sale securities10,306,257 12,258,072 13,092,422 13,247,607 13,446,095 
Fair value option securities36,846 54,832 75,539 46,458 56,307 
Restricted equity securities173,656 167,732 164,484 137,874 245,485 
Residential mortgage loans held for sale132,685 148,183 179,697 163,433 167,620 
Loans:
Commercial13,481,961 13,382,176 12,677,706 12,401,935 12,231,230 
Commercial real estate4,434,650 4,061,129 4,059,148 3,838,336 4,218,190 
Paycheck protection program26,364 90,312 210,110 404,261 792,728 
Loans to individuals3,656,257 3,524,097 3,516,698 3,598,121 3,606,460 
Total loans21,599,232 21,057,714 20,463,662 20,242,653 20,848,608 
Allowance for loan losses(241,136)(246,064)(254,191)(271,794)(306,125)
Loans, net of allowance21,358,096 20,811,650 20,209,471 19,970,859 20,542,483 
Total earning assets38,527,860 39,062,025 43,504,610 44,248,749 42,976,131 
Cash and due from banks821,801 822,599 790,440 783,670 766,688 
Derivative contracts, net
2,019,905 3,051,429 2,126,282 1,441,869 1,501,736 
Cash surrender value of bank-owned life insurance
410,667 408,489 406,379 404,149 401,926 
Receivable on unsettled securities sales219,113 457,165 375,616 585,901 632,539 
Other assets3,119,856 3,486,691 3,357,747 3,139,718 3,220,129 
TOTAL ASSETS$45,119,202 $47,288,398 $50,561,074 $50,604,056 $49,499,149 
LIABILITIES AND EQUITY
Deposits:
Demand$15,105,305 $15,202,597 $15,062,282 $14,818,841 $13,670,656 
Interest-bearing transaction19,556,806 21,037,294 22,763,479 22,326,401 21,435,736 
Savings978,596 981,493 947,407 909,131 888,011 
Time1,409,069 1,373,036 1,589,039 1,747,715 1,839,983 
Total deposits37,049,776 38,594,420 40,362,207 39,802,088 37,834,386 
Funds purchased and repurchase agreements
800,759 1,224,134 2,004,466 2,893,128 1,448,800 
Other borrowings1,528,887 1,301,358 1,148,440 880,837 2,546,083 
Subordinated debentures131,199 131,219 131,228 131,224 214,654 
Derivative contracts, net105,221 535,574 682,435 320,757 434,334 
Due on unsettled securities purchases331,428 380,332 519,097 629,642 957,538 
Other liabilities396,510 389,031 565,350 578,091 619,913 
TOTAL LIABILITIES40,343,780 42,556,068 45,413,223 45,235,767 44,055,708 
Total equity4,775,422 4,732,330 5,147,851 5,368,289 5,443,441 
TOTAL LIABILITIES AND EQUITY$45,119,202 $47,288,398 $50,561,074 $50,604,056 $49,499,149 

11

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Interest revenue$363,150 $293,463 $940,496 $887,595 
Interest expense46,825 13,236 81,742 46,639 
Net interest revenue316,325 280,227 858,754 840,956 
Provision for credit losses15,000 (23,000)15,000 (83,000)
Net interest revenue after provision for credit losses
301,325 303,227 843,754 923,956 
Other operating revenue:
Brokerage and trading revenue61,006 47,930 77,970 98,120 
Transaction card revenue25,974 24,632 77,130 71,985 
Fiduciary and asset management revenue50,190 45,248 146,427 131,402 
Deposit service charges and fees28,703 27,429 84,207 77,499 
Mortgage banking revenue11,282 26,286 39,300 84,618 
Other revenue15,479 18,896 38,608 58,364 
Total fees and commissions192,634 190,421 463,642 521,988 
Other gains (losses), net979 31,091 (8,304)57,661 
Loss on derivatives, net(17,009)(5,760)(77,559)(14,590)
Loss on fair value option securities, net(4,368)(120)(17,790)(3,657)
Change in fair value of mortgage servicing rights16,570 12,945 83,165 33,778 
Gain on available for sale securities, net892 1,255 3,017 3,152 
Total other operating revenue189,698 229,832 446,171 598,332 
Other operating expense:
Personnel170,348 175,863 484,499 520,908 
Business promotion6,127 4,939 18,965 9,837 
Charitable contributions to BOKF Foundation— — — 4,000 
Professional fees and services14,089 12,436 37,977 36,777 
Net occupancy and equipment29,296 28,395 87,640 81,690 
Insurance4,306 3,712 13,317 11,992 
Data processing and communications41,743 38,371 122,859 112,256 
Printing, postage and supplies4,349 3,558 11,967 11,283 
Amortization of intangible assets3,943 4,488 11,956 13,873 
Mortgage banking costs9,504 8,962 26,818 34,031 
Other expense11,046 10,553 30,026 41,566 
Total other operating expense294,751 291,277 846,024 878,213 
Net income before taxes196,272 241,782 443,901 644,075 
Federal and state income taxes39,681 54,061 92,000 144,939 
Net income156,591 187,721 351,901 499,136 
Net income (loss) attributable to non-controlling interests81 (601)57 (1,667)
Net income attributable to BOK Financial Corporation shareholders
$156,510 $188,322 $351,844 $500,803 
Average shares outstanding:
Basic67,003,199 68,359,125 67,409,789 68,768,044 
Diluted67,004,623 68,360,871 67,411,222 68,770,663 
Net income per share:
Basic$2.32 $2.74 $5.18 $7.23 
Diluted$2.32 $2.74 $5.18 $7.23 


12

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)
Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Capital:
Period-end shareholders' equity$4,509,934 $4,737,339 $4,849,582 $5,363,732 $5,388,973 
Risk weighted assets$36,866,994 $36,787,092 $37,160,258 $34,575,277 $33,916,456 
Risk-based capital ratios:
Common equity tier 111.80 %11.61 %11.30 %12.24 %12.26 %
Tier 111.82 %11.63 %11.31 %12.25 %12.29 %
Total capital12.81 %12.59 %12.25 %13.29 %13.38 %
Leverage ratio9.76 %9.12 %8.47 %8.55 %8.77 %
Tangible common equity ratio1
7.96 %8.16 %8.13 %8.61 %9.28 %
Common stock:
Book value per share$67.06 $69.87 $71.21 $78.34 $78.56 
Tangible book value per share$50.34 $53.22 $54.58 $61.74 $61.93 
Market value per share:
High$95.51 $94.76 $119.59 $110.21 $92.97 
Low$69.82 $74.03 $93.76 $89.01 $77.20 
Cash dividends paid$35,661 $35,892 $36,093 $36,256 $35,725 
Dividend payout ratio22.79 %27.02 %57.76 %30.90 %18.97 %
Shares outstanding, net67,254,383 67,806,005 68,104,043 68,467,772 68,596,764 
Stock buy-back program:
Shares repurchased548,034 294,084 475,877 128,522 478,141 
Amount$49,980 $24,404 $48,074 $13,426 $40,644 
Average price per share$91.20 $82.98 $101.02 $104.46 $85.00 
Performance ratios (quarter annualized):
Return on average assets1.38 %1.13 %0.50 %0.92 %1.51 %
Return on average equity13.01 %11.27 %4.93 %8.68 %13.78 %
Net interest margin3.24 %2.76 %2.44 %2.52 %2.66 %
Efficiency ratio57.35 %60.65 %75.07 %70.14 %61.23 %
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity$4,509,934 $4,737,339 $4,849,582 $5,363,732 $5,388,973 
Less: Goodwill and intangible assets, net
1,124,582 1,128,493 1,132,510 1,136,527 1,140,935 
Tangible common equity$3,385,352 $3,608,846 $3,717,072 $4,227,205 $4,248,038 
Total assets$43,645,446 $45,377,072 $46,826,507 $50,249,431 $46,923,409 
Less: Goodwill and intangible assets, net
1,124,582 1,128,493 1,132,510 1,136,527 1,140,935 
Tangible assets$42,520,864 $44,248,579 $45,693,997 $49,112,904 $45,782,474 
Tangible common equity ratio7.96 %8.16 %8.13 %8.61 %9.28 %
13

Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Pre-provision net revenue:
Net income before taxes$196,272 $168,980 $78,649 $152,025 $241,782 
Provision for expected credit losses15,000 — — (17,000)(23,000)
Net income (loss) attributable to non-controlling interests81 12 (36)(129)(601)
Pre-provision net revenue$211,191 $168,968 $78,685 $135,154 $219,383 
Other data:
Tax equivalent interest$2,163 $2,040 $1,973 $2,104 $2,217 
Net unrealized gain (loss) on available for sale securities$(935,788)$(522,812)$(546,598)$93,381 $221,487 
Mortgage banking:
Mortgage production revenue$(2,406)$(504)$5,055 $10,018 $15,403 
Mortgage loans funded for sale$260,210 $360,237 $418,866 $568,507 $652,336 
Add: current period-end outstanding commitments
75,779 106,004 160,260 171,412 239,066 
Less: prior period end outstanding commitments
106,004 160,260 171,412 239,066 276,154 
Total mortgage production volume
$229,985 $305,981 $407,714 $500,853 $615,248 
Mortgage loan refinances to mortgage loans funded for sale
10 %19 %45 %51 %48 %
Realized margin on funded mortgage loans(0.41)%0.88 %1.64 %2.34 %2.48 %
Production revenue as a percentage of production volume(1.05)%(0.16)%1.24 %2.00 %2.50 %
Mortgage servicing revenue$13,688 $11,872 $11,595 $11,260 $10,883 
Average outstanding principal balance of mortgage loans serviced for others
19,070,221 17,336,596 16,155,329 15,930,480 14,899,306 
Average mortgage servicing revenue rates0.28 %0.27 %0.29 %0.28 %0.29 %
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net
$(17,027)$(13,639)$(46,694)$(4,862)$(5,829)
Gain (loss) on fair value option securities, net
(4,368)(2,221)(11,201)1,418 (120)
Loss on economic hedge of mortgage servicing rights(21,395)(15,860)(57,895)(3,444)(5,949)
Gain on changes in fair value of mortgage servicing rights16,570 17,485 49,110 7,859 12,945 
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue(4,825)1,625 (8,785)4,415 6,996 
Net interest revenue on fair value option securities2
29 275 383 259 286 
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges$(4,796)$1,900 $(8,402)$4,674 $7,282 
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
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Interest revenue$363,150 $294,247 $283,099 $292,334 $293,463 
Interest expense46,825 20,229 14,688 15,257 13,236 
Net interest revenue316,325 274,018 268,411 277,077 280,227 
Provision for credit losses15,000 — — (17,000)(23,000)
Net interest revenue after provision for credit losses
301,325 274,018 268,411 294,077 303,227 
Other operating revenue:
Brokerage and trading revenue61,006 44,043 (27,079)14,869 47,930 
Transaction card revenue25,974 26,940 24,216 24,998 24,632 
Fiduciary and asset management revenue50,190 49,838 46,399 46,872 45,248 
Deposit service charges and fees28,703 28,500 27,004 26,718 27,429 
Mortgage banking revenue11,282 11,368 16,650 21,278 26,286 
Other revenue15,479 12,684 10,445 11,586 18,896 
Total fees and commissions192,634 173,373 97,635 146,321 190,421 
Other gains (losses), net979 (7,639)(1,644)6,081 31,091 
Loss on derivatives, net(17,009)(13,569)(46,981)(4,788)(5,760)
Gain (loss) on fair value option securities, net
(4,368)(2,221)(11,201)1,418 (120)
Change in fair value of mortgage servicing rights
16,570 17,485 49,110 7,859 12,945 
Gain on available for sale securities, net892 1,188 937 552 1,255 
Total other operating revenue189,698 168,617 87,856 157,443 229,832 
Other operating expense:
Personnel170,348 154,923 159,228 174,474 175,863 
Business promotion6,127 6,325 6,513 6,452 4,939 
Charitable contributions to BOKF Foundation
— — — 5,000 — 
Professional fees and services14,089 12,475 11,413 14,129 12,436 
Net occupancy and equipment29,296 27,489 30,855 26,897 28,395 
Insurance4,306 4,728 4,283 3,889 3,712 
Data processing and communications
41,743 41,280 39,836 39,358 38,371 
Printing, postage and supplies4,349 3,929 3,689 2,935 3,558 
Amortization of intangible assets
3,943 4,049 3,964 4,438 4,488 
Mortgage banking costs9,504 9,437 7,877 8,667 8,962 
Other expense11,046 9,020 9,960 13,256 10,553 
Total other operating expense294,751 273,655 277,618 299,495 291,277 
Net income before taxes196,272 168,980 78,649 152,025 241,782 
Federal and state income taxes39,681 36,122 16,197 34,836 54,061 
Net income156,591 132,858 62,452 117,189 187,721 
Net income (loss) attributable to non-controlling interests
81 12 (36)(129)(601)
Net income attributable to BOK Financial Corporation shareholders
$156,510 $132,846 $62,488 $117,318 $188,322 
Average shares outstanding:
Basic67,003,199 67,453,748 67,812,400 68,069,160 68,359,125 
Diluted67,004,623 67,455,172 67,813,851 68,070,910 68,360,871 
Net income per share:
Basic$2.32 $1.96 $0.91 $1.71 $2.74 
Diluted$2.32 $1.96 $0.91 $1.71 $2.74 
15

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Commercial:     
Healthcare$3,826,623 $3,696,963 $3,441,732 $3,414,940 $3,347,641 
Energy3,371,588 3,393,072 3,197,667 3,006,884 2,814,059 
Services3,280,925 3,421,493 3,351,495 3,367,193 3,323,422 
General business3,128,550 3,067,169 2,892,295 2,717,448 2,690,018 
Total commercial13,607,686 13,578,697 12,883,189 12,506,465 12,175,140 
Commercial real estate:
Multifamily1,126,700 878,565 867,288 786,404 875,586 
Industrial1,103,905 953,626 911,928 766,125 890,316 
Office1,086,615 1,100,115 1,097,516 1,040,963 1,030,755 
Retail635,021 637,304 667,561 679,917 766,402 
Residential construction and land development
91,690 111,575 120,506 120,016 118,416 
Other commercial real estate429,980 424,963 436,157 437,900 435,417 
Total commercial real estate4,473,911 4,106,148 4,100,956 3,831,325 4,116,892 
Paycheck protection program20,233 43,140 137,365 276,341 536,052 
Loans to individuals:     
Residential mortgage1,851,836 1,784,729 1,723,506 1,722,170 1,747,243 
Residential mortgages guaranteed by U.S. government agencies262,466 293,838 322,581 354,173 376,986 
Personal1,574,325 1,484,596 1,506,832 1,515,206 1,395,623 
Total loans to individuals3,688,627 3,563,163 3,552,919 3,591,549 3,519,852 
Total$21,790,457 $21,291,148 $20,674,429 $20,205,680 $20,347,936 
16

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Texas:
Commercial$6,632,610 $6,631,658 $6,254,883 $6,068,700 $5,815,562 
Commercial real estate1,448,590 1,339,452 1,345,105 1,253,439 1,383,871 
Paycheck protection program12,280 14,040 31,242 81,654 115,623 
Loans to individuals970,459 934,856 957,320 942,982 901,121 
Total Texas9,063,939 8,920,006 8,588,550 8,346,775 8,216,177 
Oklahoma:
Commercial3,104,037 3,125,764 2,883,663 2,633,014 2,590,887 
Commercial real estate608,856 576,458 552,310 546,021 552,184 
Paycheck protection program4,571 13,329 52,867 69,817 192,474 
Loans to individuals2,054,362 1,982,247 1,977,886 2,024,404 2,014,099 
Total Oklahoma5,771,826 5,697,798 5,466,726 5,273,256 5,349,644 
Colorado:
Commercial2,115,883 2,074,455 1,977,773 1,936,149 1,874,613 
Commercial real estate565,057 473,231 480,740 470,937 526,653 
Paycheck protection program1,298 8,233 28,584 82,781 140,470 
Loans to individuals237,981 234,105 236,125 256,533 249,298 
Total Colorado2,920,219 2,790,024 2,723,222 2,746,400 2,791,034 
Arizona:
Commercial1,101,917 1,080,228 1,074,551 1,130,798 1,194,801 
Commercial real estate850,319 766,767 719,970 674,309 734,174 
Paycheck protection program1,083 5,173 11,644 21,594 42,815 
Loans to individuals225,981 212,870 190,746 186,528 182,506 
Total Arizona2,179,300 2,065,038 1,996,911 2,013,229 2,154,296 
Kansas/Missouri:
Commercial307,446 338,337 334,371 338,697 336,414 
Commercial real estate466,955 458,157 436,740 382,761 408,001 
Paycheck protection program10 573 2,595 4,718 6,920 
Loans to individuals125,039 125,584 121,247 110,889 100,920 
Total Kansas/Missouri899,450 922,651 894,953 837,065 852,255 
New Mexico:
Commercial257,763 252,033 262,533 306,964 287,695 
Commercial real estate426,367 431,606 504,632 442,128 437,302 
Paycheck protection program991 1,792 9,713 13,510 31,444 
Loans to individuals68,095 67,026 63,299 63,930 66,651 
Total New Mexico753,216 752,457 840,177 826,532 823,092 
Arkansas:
Commercial88,030 76,222 95,415 92,143 75,168 
Commercial real estate107,767 60,477 61,459 61,730 74,707 
Paycheck protection program— — 720 2,267 6,306 
Loans to individuals6,710 6,475 6,296 6,283 5,257 
Total Arkansas202,507 143,174 163,890 162,423 161,438 
TOTAL BOK FINANCIAL$21,790,457 $21,291,148 $20,674,429 $20,205,680 $20,347,936 
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)
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Oklahoma:
    Demand$5,143,405 $5,422,593 $5,205,806 $5,433,405 $5,080,162 
    Interest-bearing:
       Transaction9,619,419 10,240,378 11,410,709 12,689,367 11,692,679 
       Savings558,256 561,413 558,634 521,439 510,906 
       Time776,306 678,127 817,744 978,822 1,039,866 
    Total interest-bearing10,953,981 11,479,918 12,787,087 14,189,628 13,243,451 
Total Oklahoma16,097,386 16,902,511 17,992,893 19,623,033 18,323,613 
Texas:
    Demand4,609,255 4,670,535 4,552,001 4,552,983 3,987,503 
    Interest-bearing:
       Transaction4,781,920 5,344,326 4,963,118 5,345,461 4,985,465 
       Savings179,049 183,708 182,536 178,458 165,043 
       Time343,015 333,038 329,931 337,559 337,389 
    Total interest-bearing5,303,984 5,861,072 5,475,585 5,861,478 5,487,897 
Total Texas9,913,239 10,531,607 10,027,586 10,414,461 9,475,400 
Colorado:
    Demand2,510,179 2,799,798 2,673,352 2,526,855 2,158,596 
    Interest-bearing:
       Transaction2,221,796 2,277,563 2,387,304 2,334,371 2,337,354 
       Savings80,542 82,976 81,762 78,636 79,873 
       Time151,064 160,795 165,401 174,351 184,002 
    Total interest-bearing2,453,402 2,521,334 2,634,467 2,587,358 2,601,229 
Total Colorado4,963,581 5,321,132 5,307,819 5,114,213 4,759,825 
New Mexico:
    Demand1,296,410 1,347,600 1,271,264 1,196,057 1,222,895 
    Interest-bearing:
       Transaction717,492 845,442 888,257 858,394 837,630 
       Savings113,056 115,660 115,457 107,963 107,615 
       Time142,856 148,532 156,140 163,871 168,879 
    Total interest-bearing973,404 1,109,634 1,159,854 1,130,228 1,114,124 
Total New Mexico2,269,814 2,457,234 2,431,118 2,326,285 2,337,019 
Arizona:
    Demand903,296 901,543 947,775 934,282 1,110,884 
    Interest-bearing:
       Transaction788,142 792,269 810,896 834,491 784,614 
       Savings18,258 17,999 18,122 16,182 16,468 
       Time26,704 28,774 27,259 31,274 30,862 
    Total interest-bearing833,104 839,042 856,277 881,947 831,944 
Total Arizona1,736,400 1,740,585 1,804,052 1,816,229 1,942,828 
18

Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Kansas/Missouri:
    Demand479,459 537,143 553,345 658,342 488,595 
    Interest-bearing:
       Transaction747,981 913,921 1,107,525 1,086,946 965,757 
       Savings19,375 19,943 19,589 18,844 17,303 
       Time13,258 13,962 11,527 12,255 13,040 
    Total interest-bearing780,614 947,826 1,138,641 1,118,045 996,100 
Total Kansas/Missouri1,260,073 1,484,969 1,691,986 1,776,387 1,484,695 
Arkansas:
    Demand43,111 41,084 38,798 42,499 41,594 
    Interest-bearing:
       Transaction123,273 130,300 122,020 119,543 149,611 
       Savings3,098 3,125 3,265 3,213 3,289 
       Time5,940 6,371 6,414 6,196 6,677 
    Total interest-bearing132,311 139,796 131,699 128,952 159,577 
Total Arkansas175,422 180,880 170,497 171,451 201,171 
TOTAL BOK FINANCIAL$36,415,915 $38,618,918 $39,425,951 $41,242,059 $38,524,551 

19

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents1.87 %0.83 %0.18 %0.16 %0.14 %
Trading securities2.72 %2.00 %1.71 %1.89 %2.04 %
Investment securities, net of allowance1.42 %2.35 %5.07 %4.99 %5.02 %
Available for sale securities2.21 %1.84 %1.77 %1.72 %1.80 %
Fair value option securities2.98 %2.92 %2.81 %2.71 %2.62 %
Restricted equity securities6.23 %3.30 %2.69 %2.98 %2.55 %
Residential mortgage loans held for sale5.05 %4.22 %3.11 %3.06 %3.06 %
Loans4.89 %3.92 %3.57 %3.70 %3.68 %
Allowance for loan losses
Loans, net of allowance4.94 %3.96 %3.61 %3.75 %3.73 %
Total tax-equivalent yield on earning assets3.71 %2.96 %2.58 %2.66 %2.78 %
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
  Interest-bearing transaction0.63 %0.22 %0.10 %0.09 %0.09 %
  Savings0.05 %0.03 %0.03 %0.04 %0.04 %
  Time0.93 %0.68 %0.56 %0.53 %0.55 %
Total interest-bearing deposits0.63 %0.24 %0.12 %0.12 %0.13 %
Funds purchased and repurchase agreements0.72 %0.53 %0.95 %0.73 %0.20 %
Other borrowings2.33 %1.01 %0.38 %0.49 %0.37 %
Subordinated debt5.07 %4.50 %4.02 %4.02 %4.63 %
Total cost of interest-bearing liabilities0.76 %0.31 %0.21 %0.21 %0.19 %
Tax-equivalent net interest revenue spread2.95 %2.65 %2.37 %2.45 %2.59 %
Effect of noninterest-bearing funding sources and other
0.29 %0.11 %0.07 %0.07 %0.07 %
Tax-equivalent net interest margin3.24 %2.76 %2.44 %2.52 %2.66 %

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.

20

CREDIT QUALITY INDICATORS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare$41,438 $14,886 $15,076 $15,762 $509 
Services27,315 15,259 16,535 17,170 25,714 
Energy4,164 20,924 24,976 31,091 45,500 
General business2,753 3,539 3,750 10,081 8,951 
Total commercial75,670 54,608 60,337 74,104 80,674 
Commercial real estate7,971 10,939 15,989 14,262 21,223 
Loans to individuals:
Permanent mortgage30,066 30,460 30,757 31,574 30,674 
Permanent mortgage guaranteed by U.S. government agencies
16,957 18,000 16,992 13,861 9,188 
Personal136 132 171 258 188 
Total loans to individuals47,159 48,592 47,920 45,693 40,050 
Total nonaccruing loans$130,800 $114,139 $124,246 $134,059 $141,947 
Accruing renegotiated loans guaranteed by U.S. government agencies
176,022 196,420 204,121 210,618 178,554 
Real estate and other repossessed assets29,676 22,221 24,492 24,589 28,770 
Total nonperforming assets$336,498 $332,780 $352,859 $369,266 $349,271 
Total nonperforming assets excluding those guaranteed by U.S. government agencies
$143,519 $118,360 $131,746 $144,787 $161,529 
Accruing loans 90 days past due1
$120 $3 $307 $313 $223 
Gross charge-offs$1,766 $1,368 $7,805 $6,558 $9,584 
Recoveries(1,309)(2,167)(1,824)(7,272)(1,769)
Net charge-offs (recoveries)$457 $(799)$5,981 $(714)$7,815 
Provision for loan losses
$1,111 $(6,158)$(3,967)$(20,973)$(27,395)
Provision for credit losses from off-balance sheet unfunded loan commitments
14,060 6,005 3,268 3,738 4,952 
Provision for expected credit losses from mortgage banking activities(66)69 621 150 (534)
Provision for credit losses related to held-to maturity (investment) securities portfolio(105)84 78 85 (23)
Total provision for credit losses$15,000 $— $— $(17,000)$(23,000)
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Three Months Ended
Sep. 30, 2022June 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Allowance for loan losses to period end loans
1.11 %1.13 %1.19 %1.27 %1.36 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans
1.37 %1.33 %1.37 %1.43 %1.50 %
Nonperforming assets to period end loans and repossessed assets
1.54 %1.56 %1.70 %1.83 %1.71 %
Net charge-offs (annualized) to average loans
0.01 %(0.02)%0.12 %(0.01)%0.15 %
Allowance for loan losses to nonaccruing loans1
212.37 %250.80 %229.80 %213.33 %208.41 %
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1
261.83 %294.74 %263.60 %240.77 %230.43 %
1    Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

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SEGMENTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)
Three Months Ended
3Q22 vs 2Q22
3Q22 vs 3Q21
Sep. 30, 2022June 30, 2022Sep. 30, 2021$ change% change$ change% change
Commercial Banking
Net interest revenue$206,904 $166,542 $134,104 $40,362 24.2 %$72,800 54.3 %
Fees and commissions revenue58,147 59,881 56,452 (1,734)(2.9)%1,695 3.0 %
Combined net interest and fee revenue265,051 226,423 190,556 38,628 17.1 %74,495 39.1 %
Other operating expense75,872 70,009 68,301 5,863 8.4 %7,571 11.1 %
Corporate expense allocations16,451 16,634 11,769 (183)(1.1)%4,682 39.8 %
Net income132,941 104,813 102,694 28,128 26.8 %30,247 29.5 %
Average assets28,890,429 29,269,712 28,474,132 (379,283)(1.3)%416,297 1.5 %
Average loans17,904,779 17,336,841 16,588,875 567,938 3.3 %1,315,904 7.9 %
Average deposits17,966,661 18,933,766 17,881,673 (967,105)(5.1)%84,988 0.5 %
Consumer Banking
Net interest revenue$43,951 $33,786 $27,222 $10,165 30.1 %$16,729 61.5 %
Fees and commissions revenue30,230 30,101 44,405 129 0.4 %(14,175)(31.9)%
Combined net interest and fee revenue74,181 63,887 71,627 10,294 16.1 %2,554 3.6 %
Other operating expense53,236 52,660 49,483 576 1.1 %3,753 7.6 %
Corporate expense allocations10,792 10,120 11,516 672 6.6 %(724)(6.3)%
Net income2,970 1,239 12,432 1,731 139.7 %(9,462)(76.1)%
Average assets10,233,401 10,338,191 10,083,593 (104,790)(1.0)%149,808 1.5 %
Average loans1,686,498 1,669,830 1,763,705 16,668 1.0 %(77,207)(4.4)%
Average deposits8,812,884 8,876,469 8,516,942 (63,585)(0.7)%295,942 3.5 %
Wealth Management
Net interest revenue$33,584 $37,747 $55,196 $(4,163)(11.0)%$(21,612)(39.2)%
Fees and commissions revenue113,113 86,771 97,966 26,342 30.4 %15,147 15.5 %
Combined net interest and fee revenue146,697 124,518 153,162 22,179 17.8 %(6,465)(4.2)%
Other operating expense79,151 76,393 87,498 2,758 3.6 %(8,347)(9.5)%
Corporate expense allocations12,934 12,503 10,110 431 3.4 %2,824 27.9 %
Net income41,808 27,287 41,339 14,521 53.2 %469 1.1 %
Average assets13,818,299 16,902,721 19,109,704 (3,084,422)(18.2)%(5,291,405)(27.7)%
Average loans2,163,975 2,157,771 1,971,380 6,204 0.3 %192,595 9.8 %
Average deposits7,999,074 8,482,785 9,120,446 (483,711)(5.7)%(1,121,372)(12.3)%
Fiduciary assets54,714,705 55,972,584 60,497,576 (1,257,879)(2.2)%(5,782,871)(9.6)%
Assets under management or administration95,401,638 95,981,289 98,842,789 (579,651)(0.6)%(3,441,151)(3.5)%


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