BOK Financial Corporation Reports Quarterly Earnings of $84 million, or $1.29 Per Share, in the First Quarter

TULSA, OK / ACCESSWIRE / April 24, 2024 /

First quarter 2024 financial highlights¹

• Net income was $83.7 million or $1.29 per diluted share compared to $82.6 million or $1.26 per diluted share. Excluding the loss from repositioning of the available for sale securities portfolio and the additional FDIC special assessment expense, net income would have been $123.2 million or $1.91 per share for the first quarter of 2024.
• Net interest revenue totaled $293.6 million, a decrease of $3.1 million. Net interest margin was 2.61% compared to 2.64%.
• Fees and commissions revenue was $200.6 million, an increase of $3.8 million. Higher mortgage banking and fiduciary and asset management revenue was partially offset by lower brokerage and trading and transaction card revenue.
• Operating expense decreased $43.7 million to $340.4 million, primarily due to a reduction in non-personnel expense resulting from the FDIC special assessment recognized in the fourth quarter of 2023. Personnel expense was relatively consistent with the prior quarter.
• Period end loans grew by $268 million to $24.2 billion at March 31, 2024, mostly driven by growth in commercial loans, partially offset by a reduction in commercial real estate loans. Average outstanding loan balances were $23.9 billion, a $243 million increase.
• Nonperforming assets totaled $122 million or 0.51% of outstanding loans and repossessed assets at March 31, 2024, compared to $148 million or 0.62% at December 31, 2023. Net charge-offs were $5.5 million or 0.09% of average loans on an annualized basis in the first quarter.
• Period end deposits increased $1.4 billion to $35.4 billion while average deposits increased $1.3 billion to $35.0 billion. Average interest-bearing deposits increased $2.1 billion while average demand deposits declined by $747 million. The loan to deposit ratio was 68% at March 31, 2024 compared to 70% at December 31, 2023.
• Tangible common equity ratio was 8.21% compared to 8.29% at December 31, 2023. Tier 1 capital ratio was 12.00%, Common equity Tier 1 capital ratio was 11.99%, and total capital ratio was 13.15%.

¹ Comparisons are to prior quarter unless otherwise noted.

CEO Commentary

First quarter results were characterized by a stabilizing net interest margin, strong asset quality, continued strong operating revenue growth, and well-managed expenses. It is also another reflection of our long-term focus and efforts to create sustainable earnings. While many banks sold their VISA B shares at a considerable discount, we chose to retain the shares we received in 2008 and expect to receive full value in VISA's announced exchange offer. Given our perception of market spreads, we took an opportunity to reposition the securities portfolio in the first quarter in anticipation of a gain in the second quarter this year from monetizing our VISA B shares. The net result is expected to further improve our net interest margin and net interest revenue outlook in future periods. Commercial loans grew almost 9% annualized as we focus on growth to utilize our strong capital and liquidity levels as others retrench. Our credit metrics remain very strong and are a direct reflection of the focus we put on disciplined risk management. I am also exceptionally proud we were recognized as one of only 60 organizations to receive the 2024 Gallup Exceptional Workplace Award. This is independent validation of our culture of inspiration, ambition, collaboration, and tenacity.

Net Interest Revenue

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Change				% Change
Interest revenue		$	645,212			$	638,324			$	6,888				1.1	%
Interest expense			351,640				341,649				9,991				2.9	%
Net interest revenue		$	293,572			$	296,675			$	(3,103	)			(1.0	)%
Net interest margin			2.61	%			2.64	%			(0.03	)%			N/A
Average earning assets		$	44,846,886			$	44,327,237			$	519,649				1.2	%
Average trading securities			5,371,209				5,448,403				(77,194	)			(1.4	)%
Average investment securities			2,210,040				2,264,194				(54,154	)			(2.4	)%
Average available for sale securities			12,537,981				12,063,398				474,583				3.9	%
Average loans balance			23,948,567				23,705,108				243,459				1.0	%
Average interest-bearing deposits			26,394,475				24,297,327				2,097,148				8.6	%
Funds purchased and repurchase agreements			1,258,044				2,476,973				(1,218,929	)			(49.2	)%
Other borrowings			6,844,633				7,120,963				(276,330	)			(3.9	)%

Net interest revenue was $293.6 million for the first quarter of 2024 compared to $296.7 million for the prior quarter. Net interest margin was 2.61% compared to 2.64%, reflective of continued demand deposit migration and deposit repricing. For the first quarter of 2024, our core net interest margin excluding trading activities, a non-GAAP measure, was 2.97% compared to 3.03% in the prior quarter.

Average earning assets increased $520 million. Average loan balances increased $243 million, largely due to growth in commercial loans, partially offset by a reduction in commercial real estate loan balances. Average available for sale securities grew $475 million while average trading securities decreased $77 million. Average interest-bearing deposits increased $2.1 billion, primarily from interest-bearing transaction accounts. Funds purchased and repurchase agreements declined $1.2 billion while average other borrowings decreased $276 million.

The yield on average earning assets was 5.73%, up 9 basis points. The yield on the available for sale securities portfolio increased 21 basis points to 3.48% while the loan portfolio yield increased 4 basis points to 7.40%. The yield on trading securities grew 7 basis points to 5.12% and the yield on interest-bearing cash and cash equivalents decreased 34 basis points to 4.96%.

Funding costs were 4.08%, up 10 basis points. The cost of interest-bearing deposits increased 26 basis points to 3.69%. The cost of funds purchased and repurchase agreements decreased 74 basis points to 4.05% from the beneficial mix shift enabled by the growth of interest-bearing deposits. The benefit to net interest margin from assets funded by non-interest liabilities was 96 basis points, a decrease of 2 basis points.

Other Operating Revenue

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Change				% Change
Brokerage and trading revenue		$	59,179			$	60,896			$	(1,717	)			(2.8	)%
Transaction card revenue			25,493				28,847				(3,354	)			(11.6	)%
Fiduciary and asset management revenue			55,305				51,408				3,897				7.6	%
Deposit service charges and fees			28,685				27,770				915				3.3	%
Mortgage banking revenue			18,967				12,834				6,133				47.8	%
Other revenue			12,935				15,035				(2,100	)			(14.0	)%
Total fees and commissions			200,564				196,790				3,774				1.9	%
Other gains, net			4,269				40,452				(36,183	)			N/A
Gain (loss) on derivatives, net			(8,633	)			8,592				(17,225	)			N/A
Gain (loss) on fair value option securities, net			(305	)			1,031				(1,336	)			N/A
Change in fair value of mortgage servicing rights			10,977				(14,356	)			25,333				N/A
Loss on available for sale securities, net			(45,171	)			(27,626	)			(17,545	)			N/A
Total other operating revenue		$	161,701			$	204,883			$	(43,182	)			(21.1	)%

Fees and commissions revenue totaled $200.6 million for the first quarter of 2024, an increase of $3.8 million over the prior quarter.

Mortgage banking revenue increased $6.1 million. Mortgage production volume increased $47.6 million and realized margin on funded mortgage loans improved 244 basis points to 1.46%.

Fiduciary and asset management revenue increased $3.9 million to $55.3 million, primarily due to growth in trust business line fees resulting from movement in the equity markets.

Brokerage and trading revenue decreased $1.7 million to $59.2 million. Trading revenue grew $1.9 million to $37.5 million reflecting increased trading activity primarily in U.S. government agency residential mortgage-backed securities.

Insurance brokerage fees decreased $1.8 million in conjunction with the sale of our insurance brokerage and consulting business, BOK Financial Insurance ("BOKFI") in the fourth quarter. Customer hedging revenue decreased $1.3 million, largely as result of reduced energy customer hedging volumes.

Transaction card revenue decreased $3.4 million to $25.5 million, primarily due to seasonally elevated fourth quarter activity and one less day in the quarter.

Other revenue decreased $2.1 million, largely due to a reduction in fees earned on derivative counterparty margin.

Other gains, net decreased $36.2 million to $4.3 million. The fourth quarter of 2023 included a $31.0 million pre-tax gain, before related professional fees, on the sale of BOKFI.

Losses on available for sale securities were $45.2 million in the first quarter of 2024 as we repositioned the available for sale securities portfolio by selling approximately $783 million of lower-yielding debt securities. We expect the gain on conversion of our Visa B shares under the recently announced exchange offer by Visa, Inc. will offset the realized losses on the repositioning. The Visa Exchange Offer opened on April 8 and is scheduled to expire at end of day on May 3, 2024.

Operating Expenses

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Change				% Change
Personnel		$	202,653			$	203,022			$	(369	)			(0.2	)%
Business promotion			7,978				8,629				(651	)			(7.5	)%
Charitable contributions to BOKF Foundation			-				1,542				(1,542	)			(100.0	)%
Professional fees and services			12,010				16,288				(4,278	)			(26.3	)%
Net occupancy and equipment			30,293				30,355				(62	)			(0.2	)%
FDIC and other insurance			8,740				8,495				245				2.9	%
FDIC special assessment			6,454				43,773				(37,319	)			(85.3	)%
Data processing and communications			45,564				45,584				(20	)			-	%
Printing, postage and supplies			3,997				3,844				153				4.0	%
Amortization of intangible assets			3,003				3,543				(540	)			(15.2	)%
Mortgage banking costs			6,355				8,085				(1,730	)			(21.4	)%
Other expense			13,337				10,923				2,414				22.1	%
Total operating expense		$	340,384			$	384,083			$	(43,699	)			(11.4	)%

Total operating expense was $340.4 million for the first quarter of 2024, a decrease of $43.7 million compared to the fourth quarter of 2023.

Personnel expense was $202.7 million, consistent with the prior quarter. Higher seasonal employee benefits costs were offset by reduced incentive compensation expense while regular compensation remained flat compared to the prior quarter.

Non-personnel expense was $137.7 million, a decrease of $43.3 million. In the fourth quarter of 2023, we recognized $43.8 million of expense related to the FDIC special assessment. During the first quarter of 2024, we received notification from the FDIC that the previous assessed losses attributable to the protection of Silicon Valley Bank and Signature Bank uninsured depositors had increased, so an additional $6.5 million of estimated expense related to the special assessment was recognized.

Professional fees and services expense decreased $4.3 million. The previous quarter included $2.2 million in expenses related to the sale of BOKFI.

Other expense was up $2.4 million, primarily due to increased operational losses.

Loans

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Change				% Change
Commercial:
Healthcare		$	4,245,939			$	4,143,233			$	102,706				2.5	%
Services			3,529,421				3,576,223				(46,802	)			(1.3	)%
Energy			3,443,719				3,437,101				6,618				0.2	%
General business			3,913,788				3,647,212				266,576				7.3	%
Total commercial			15,132,867				14,803,769				329,098				2.2	%
Commercial Real Estate:
Multifamily			1,960,839				1,872,760				88,079				4.7	%
Industrial			1,343,970				1,475,165				(131,195	)			(8.9	)%
Office			901,105				909,442				(8,337	)			(0.9	)%
Retail			543,735				592,632				(48,897	)			(8.3	)%
Residential construction and land development			83,906				95,052				(11,146	)			(11.7	)%
Other real estate loans			403,122				392,596				10,526				2.7	%
Total commercial real estate			5,236,677				5,337,647				(100,970	)			(1.9	)%
Loans to individuals:
Residential mortgage			2,192,584				2,160,640				31,944				1.5	%
Residential mortgages guaranteed by U.S. government agencies			139,456				149,807				(10,351	)			(6.9	)%
Personal			1,470,976				1,453,105				17,871				1.2	%
Total loans to individuals			3,803,016				3,763,552				39,464				1.0	%
Total loans		$	24,172,560			$	23,904,968			$	267,592				1.1	%

Outstanding loans were $24.2 billion at March 31, 2024, growing $268 million over December 31, 2023, largely due to growth in commercial loans, partially offset by a reduction in commercial real estate loans. Unfunded loan commitments decreased $359 million compared to the fourth quarter of 2023.

Outstanding commercial loan balances, which includes healthcare, services, energy and general business loans, increased $329 million over the prior quarter.

Healthcare sector loan balances increased $103 million, totaling $4.2 billion or 18% of total loans. Our healthcare sector loans primarily consist of $3.5 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 $267 million to $3.9 billion or 16% of total loans. General business loans include $2.4 billion of wholesale/retail loans and $1.5 billion of loans from other commercial industries.

Services sector loan balances decreased $47 million to $3.5 billion or 15% 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.

Energy loan balances were largely unchanged compared to the prior quarter at $3.4 billion or 14% 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 70% of committed production loans are secured by properties primarily producing oil. The remaining 30% is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $4.3 billion at March 31, 2024, a $147 million decrease compared to December 31, 2023.

Commercial real estate loan balances decreased $101 million to $5.2 billion and represent 22% of total loans. Loans secured by industrial facilities decreased $131 million to $1.3 billion and loans secured by retail facilities decreased $49 million to $544 million. These decreases were partially offset by an $88 million increase in loans secured by multifamily properties. Unfunded commercial real estate loan commitments were $1.7 billion at March 31, 2024, a decrease of $147 million compared to December 31, 2023. We take a disciplined approach to managing our concentration of commercial real estate loan commitments as a percentage of capital.

Loans to individuals increased $39 million and represent 16% of total loans. Residential mortgage loans increased $22 million while personal loans increased $18 million.

Period End & Average Deposits

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Change				% Change
Period end deposits
Demand		$	8,414,056			$	9,196,493			$	(782,437	)			(8.5	)%
Interest-bearing transaction			22,748,185				20,964,101				1,784,084				8.5	%
Savings			854,397				847,085				7,312				0.9	%
Time			3,366,909				3,012,022				354,887				11.8	%
Total deposits		$	35,383,547			$	34,019,701			$	1,363,846				4.0	%
Average deposits
Demand		$	8,631,416			$	9,378,886			$	(747,470	)			(8.0	)%
Interest-bearing transaction			22,264,259				20,449,370				1,814,889				8.9	%
Savings			843,037				845,705				(2,668	)			(0.3	)%
Time			3,287,179				3,002,252				284,927				9.5	%
Total average deposits		$	35,025,891			$	33,676,213			$	1,349,678				4.0	%

Our funding sources, which primarily include deposits and wholesale borrowings, provide adequate liquidity to meet our needs. The loan to deposit ratio was 68% at March 31, 2024, compared to 70% at December 31, 2023, providing significant on-balance sheet liquidity to meet future loan demand and contractual obligations.

Period end deposits totaled $35.4 billion at March 31, 2024, a $1.4 billion increase. Interest-bearing transaction account balances increased $1.8 billion while time deposits increased $355 million. Demand deposits decreased $782 million.

Average deposits were $35.0 billion at March 31, 2024, a $1.3 billion increase. Average interest-bearing transaction account balances increased $1.8 billion and average time deposits increased $285 million. Average demand deposit account balances decreased $747 million.

Average Commercial Banking deposits increased $237 million to $15.7 billion or 45% of total deposits. Our commercial deposit portfolio is highly diversified across industries and customers. The highest concentration by industry within our commercial deposit portfolio is with our energy customers representing 8% of our total deposits. Wealth Management deposits increased $1.2 billion to $9.2 billion or 26% of total deposits. Consumer Banking deposits were largely unchanged at $7.9 billion or 23% of total deposits.

Capital

		Minimum Capital Requirement				Capital Conservation Buffer				Minimum Capital Requirement Including Capital Conservation Buffer				Mar. 31, 2024				Dec. 31, 2023
Common equity Tier 1			4.50	%			2.50	%			7.00	%			11.99	%			12.06	%
Tier 1 capital			6.00	%			2.50	%			8.50	%			12.00	%			12.07	%
Total capital			8.00	%			2.50	%			10.50	%			13.15	%			13.16	%
Tier 1 Leverage			4.00	%			N/A				4.00	%			9.42	%			9.45	%
Tangible common equity ratio1															8.21	%			8.29	%
Adjusted common tangible equity ratio1															7.92	%			8.02	%
Common stock repurchased (shares)															616,630				700,237
Average price per share repurchased														$	83.89			$	70.99

¹ See Explanation and Reconciliation of Non-GAAP Measures following.

The company's common equity Tier 1 capital ratio was 11.99% at March 31, 2024. In addition, the company's Tier 1 capital ratio was 12.00%, total capital ratio was 13.15%, and leverage ratio was 9.42% at March 31, 2024. 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 3 basis points to the company's common equity tier 1 capital ratio at March 31, 2024. At December 31, 2023, the company's common equity Tier 1 capital ratio was 12.06%, Tier 1 capital ratio was 12.07%, total capital ratio was 13.16%, and leverage ratio was 9.45%.

The company's tangible common equity ratio, a non-GAAP measure, was 8.21% at March 31, 2024 and 8.29% at December 31, 2023. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. Adjusted for all unrealized securities portfolio gains and losses, including those in the investment portfolio, the tangible common equity ratio would be 7.92%. 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 616,630 shares of common stock at an average price paid of $83.89 a share in the first quarter of 2024. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Nonperforming assets totaled $122 million or 0.51% of outstanding loans and repossessed assets at March 31, 2024, compared to $148 million or 0.62% at December 31, 2023. Excluding loans guaranteed by U.S. government agencies, nonperforming assets totaled $113 million or 0.47% of outstanding loans and repossessed assets at March 31, 2024, compared to $139 million or 0.58% at December 31, 2023.

Nonaccruing loans decreased $26 million compared to December 31, 2023. New nonaccruing loans identified in the first quarter totaled $24 million, offset by $34 million of loans that returned to accruing status, $8.6 million in payments received and $7.1 million of charge-offs. Nonaccruing healthcare loans decreased $32 million, partially offset by a $15 million increase in nonaccruing commercial real estate loans.

Net charge-offs were $5.5 million or 0.09% of average loans on an annualized basis in the first quarter. Charge-offs for the first quarter were primarily composed of a $3.2 million general business loan and a $1.3 million commercial real estate loan.

The provision for credit losses of $8.0 million in the first quarter of 2024 reflects continued loan growth and a stable economic forecast. The provision for credit losses was $6.0 million in the fourth quarter of 2023.

At March 31, 2024, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $329 million or 1.36% of outstanding loans and 298% of nonaccruing loans. At December 31, 2023, the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $326 million or 1.36% of outstanding loans and 240% of nonaccruing loans.

Securities & Derivatives

The fair value of the available for sale securities portfolio totaled $12.7 billion at March 31, 2024, a $366 million increase compared to December 31, 2023. At March 31, 2024, the available for sale securities portfolio consisted primarily of $7.8 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.7 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2024, the available for sale securities portfolio had a net unrealized loss of $643 million compared to $617 million at December 31, 2023.

We hold an inventory of trading securities in support of sales to a variety of customers. At March 31, 2024, the trading securities portfolio totaled $5.4 billion compared to $5.2 billion at December 31, 2023.

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 $866 thousand to $19.8 million at March 31, 2024.

Derivative contracts are carried at fair value. At March 31, 2024, the net fair values of derivative contracts, before consideration of cash margin, reported as assets under our customer derivative programs totaled $463 million compared to $593 million at December 31, 2023. The aggregate net fair value of derivative contracts, before consideration of cash margin, held under these programs reported as liabilities totaled $460 million at March 31, 2024 and $587 million at December 31, 2023.

The net benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million during the first quarter of 2024, including an $11.0 million increase in the fair value of mortgage servicing rights, a $9.7 million decrease in the fair value of securities and derivative contracts held as an economic hedge and $155 thousand of related net interest expense.

First Quarter 2024 Segment Highlights

		Commercial Banking								Consumer Banking								Wealth Management
(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Mar. 31, 2024				Dec. 31, 2023				Mar. 31, 2024				Dec. 31, 2023
Net interest revenue and fee revenue		$	295,751			$	328,816			$	138,356			$	144,471			$	158,813			$	161,515
Net loans charged-off			4,160				2,987				1,808				1,443				(15	)			10
Personnel expense			45,319				53,066				25,236				23,051				63,777				66,151
Non-personnel expense			24,776				28,833				28,211				32,028				35,758				30,124
Net income			153,250				171,084				53,804				53,695				34,165				62,690
Average loans			20,067,170				19,928,602				1,913,586				1,877,303				2,198,803				2,154,416
Average deposits			15,730,241				15,493,326				7,901,167				7,890,032				9,237,965				8,085,643
Assets under management or administration			-				-				-				-				105,530,903				104,736,999

Commercial Banking contributed $153.3 million to net income in the first quarter of 2024, a decrease of $17.8 million compared to the fourth quarter of 2023. Combined net interest revenue and fee revenue decreased $33.1 million. Net interest revenue declined due to a shift in deposit balances from demand to interest-bearing transaction accounts along with decreased spreads due to a change in market conditions. Customer hedging revenue fell due to a reduction in customer energy hedging and transaction card revenue decreased following elevated fourth quarter transaction activity. Net loans charged-off increased $1.2 million to $4.2 million in the first quarter of 2024. Personnel expense decreased $7.7 million primarily due to lower incentive compensation costs. Non-personnel expense decreased $4.1 million due to decreases in other expense and professional fees. Average loans increased $139 million or 1% to $20.1 billion. Average deposits increased $237 million or 2% to $15.7 billion.

Consumer Banking contributed $53.8 million to net income in the first quarter of 2024, consistent with the prior quarter. Combined net interest revenue and fee revenue decreased $6.1 million, largely due to increased customer demand for time deposits and a reduction in deposit spreads from a change in market conditions, partially offset by an increase in mortgage banking revenue from higher production volumes. Operating expense decreased $1.6 million. The net benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $1.2 million compared to a net cost of $5.2 million for the fourth quarter of 2023. Average loans increased $36 million or 2% to $1.9 billion. Average deposits were mostly unchanged from the previous quarter.

Wealth Management contributed $34.2 million to net income in the first quarter of 2024, a decrease of $28.5 million compared to the fourth quarter of 2023. The prior quarter included a pre-tax gain of $31.0 million, before related professional fees, on the sale of our insurance brokerage and consulting business, BOKFI. Combined net interest and fee revenue decreased $2.7 million due to declining spread on deposits. Total revenue from institutional trading activities increased $1.4 million, primarily in U.S. government residential mortgage-backed securities trading activity. Personnel expense decreased $2.4 million as the prior quarter included transaction related employee costs on the BOKFI sale. Non-personnel expense increased $5.6 million, primarily due to an increased level of operational losses, partially offset by a $2.7 milliondecrease in professional fees. Average loans increased $44 million or 2% to $2.2 billion. Average deposits increased $1.2 billion or 14% to $9.2 billion. Assets under management or administration were $105.5 billion, an increase of $794 million.

Conference Call & Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, April 24, 2024 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company's website at bokf.com. The conference call can also be accessed by dialing 1-800-715-9871 toll free, or 1-646-307-1963, conference ID: 5365153. A webcast replay will also be available shortly after conclusion of the live call at bokf.com or by dialing 1-800-770-2030 and referencing playback ID: 5365153 followed by # key.

About BOK Financial Corporation

BOK Financial Corporation is a $50 billion regional financial services company headquartered in Tulsa, Oklahoma with $106 billion in assets under management or administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc.; and BOK Financial Private Wealth, Inc. BOKF, NA's holdings include TransFund and Cavanal Hill Investment Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Wisconsin, Connecticut and Tennessee. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment and trustservices, 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 March 31, 2024 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 and the economy generally. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "plans," "outlook," "projects," "will," "intends," variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that acquisitions and growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These various forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in government, changes in commodity prices, interest rates and interest rate relationships, inflation, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial Corporation and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)		Mar. 31, 2024				Dec. 31, 2023
Assets
Cash and due from banks		$	801,677			$	947,613
Interest-bearing cash and cash equivalents			354,070				400,652
Trading securities			5,441,038				5,193,505
Investment securities, net of allowance			2,185,744				2,244,153
Available for sale securities			12,653,088				12,286,681
Fair value option securities			19,805				20,671
Restricted equity securities			382,549				423,099
Residential mortgage loans held for sale			75,449				56,935
Loans:
Commercial			15,132,867				14,803,769
Commercial real estate			5,236,677				5,337,647
Loans to individuals			3,803,016				3,763,552
Total loans			24,172,560				23,904,968
Allowance for loan losses			(281,623	)			(277,123	)
Loans, net of allowance			23,890,937				23,627,845
Premises and equipment, net			628,050				622,223
Receivables			308,736				317,922
Goodwill			1,044,749				1,044,749
Intangible assets, net			56,894				59,979
Mortgage servicing rights			319,330				293,884
Real estate and other repossessed assets, net			2,860				2,875
Derivative contracts, net			263,493				410,304
Cash surrender value of bank-owned life insurance			410,368				409,548
Receivable on unsettled securities sales			67,854				391,910
Other assets			1,253,689				1,070,282
Total assets		$	50,160,380			$	49,824,830
Liabilities
Deposits:
Demand		$	8,414,056			$	9,196,493
Interest-bearing transaction			22,748,185				20,964,101
Savings			854,397				847,085
Time			3,366,909				3,012,022
Total deposits			35,383,547				34,019,701
Funds purchased and repurchase agreements			1,261,517				1,122,748
Other borrowings			6,724,652				7,701,552
Subordinated debentures			131,154				131,150
Accrued interest, taxes and expense			318,622				338,996
Due on unsettled securities purchases			264,230				254,057
Derivative contracts, net			438,605				587,473
Other liabilities			506,418				523,734
Total liabilities			45,028,745				44,679,411
Shareholders' equity
Capital, surplus and retained earnings			5,738,879				5,741,542
Accumulated other comprehensive loss			(610,128	)			(599,100	)
Total shareholders' equity			5,128,751				5,142,442
Non-controlling interests			2,884				2,977
Total equity			5,131,635				5,145,419
Total liabilities and equity		$	50,160,380			$	49,824,830

AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Assets
Interest-bearing cash and cash equivalents		$	567,680			$	605,839			$	598,734			$	708,475			$	616,596
Trading securities			5,371,209				5,448,403				5,444,587				4,274,803				3,031,969
Investment securities, net of allowance			2,210,040				2,264,194				2,331,595				2,408,122				2,473,796
Available for sale securities			12,537,981				12,063,398				11,925,800				12,033,597				11,738,693
Fair value option securities			20,080				20,086				41,741				245,469				300,372
Restricted equity securities			412,376				432,780				445,532				351,944				316,724
Residential mortgage loans held for sale			57,402				61,146				77,208				72,959				65,769
Loans:
Commercial			14,992,639				14,680,001				14,527,676				14,316,474				14,046,237
Commercial real estate			5,188,152				5,293,021				5,172,876				4,896,230				4,757,362
Loans to individuals			3,767,776				3,732,086				3,713,756				3,676,350				3,672,648
Total loans			23,948,567				23,705,108				23,414,308				22,889,054				22,476,247
Allowance for loan losses			(278,449	)			(273,717	)			(267,205	)			(252,890	)			(238,909	)
Loans, net of allowance			23,670,118				23,431,391				23,147,103				22,636,164				22,237,338
Total earning assets			44,846,886				44,327,237				44,012,300				42,731,533				40,781,257
Cash and due from banks			861,319				883,858				799,291				875,280				857,771
Derivative contracts, net			326,564				372,789				412,707				410,793				546,018
Cash surrender value of bank-owned life insurance			409,230				407,665				408,295				409,313				408,124
Receivable on unsettled securities sales			307,389				276,856				268,344				163,903				177,312
Other assets			3,276,184				3,445,265				3,418,615				3,317,285				3,211,986
Total assets		$	50,027,572			$	49,713,670			$	49,319,552			$	47,908,107			$	45,982,468
Liabilities
Deposits:
Demand		$	8,631,416			$	9,378,886			$	10,157,821			$	10,998,201			$	12,406,408
Interest-bearing transaction			22,264,259				20,449,370				19,415,599				18,368,592				18,639,900
Savings			843,037				845,705				874,530				926,882				958,443
Time			3,287,179				3,002,252				2,839,947				2,076,037				1,477,720
Total deposits			35,025,891				33,676,213				33,287,897				32,369,712				33,482,471
Funds purchased and repurchase agreements			1,258,044				2,476,973				2,699,027				3,670,994				1,759,237
Other borrowings			6,844,633				7,120,963				6,968,309				5,275,291				4,512,280
Subordinated debentures			131,154				131,151				131,151				131,153				131,166
Derivative contracts, net			537,993				524,101				429,989				576,558				428,023
Due on unsettled securities purchases			499,936				363,358				435,927				436,353				316,738
Other liabilities			574,954				483,934				461,686				503,134				511,530
Total liabilities			44,872,605				44,776,693				44,413,986				42,963,195				41,141,445
Total equity			5,154,967				4,936,977				4,905,566				4,944,912				4,841,023
TOTAL LIABILITIES AND EQUITY		$	50,027,572			$	49,713,670			$	49,319,552			$	47,908,107			$	45,982,468

STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
		March 31,
(In thousands, except per share data)		2024				2023
Interest revenue		$	645,212			$	516,729
Interest expense			351,640				164,381
Net interest revenue			293,572				352,348
Provision for credit losses			8,000				16,000
Net interest revenue after provision for credit losses			285,572				336,348
Other operating revenue:
Brokerage and trading revenue			59,179				52,396
Transaction card revenue			25,493				25,621
Fiduciary and asset management revenue			55,305				50,657
Deposit service charges and fees			28,685				25,968
Mortgage banking revenue			18,967				14,367
Other revenue			12,935				16,970
Total fees and commissions			200,564				185,979
Other gains, net			4,269				2,251
Loss on derivatives, net			(8,633	)			(1,344	)
Loss on fair value option securities, net			(305	)			(2,962	)
Change in fair value of mortgage servicing rights			10,977				(6,059	)
Loss on available for sale securities, net			(45,171	)			-
Total other operating revenue			161,701				177,865
Other operating expense:
Personnel			202,653				182,145
Business promotion			7,978				8,569
Professional fees and services			12,010				13,048
Net occupancy and equipment			30,293				28,459
FDIC and other insurance			8,740				7,315
FDIC special assessment			6,454				-
Data processing and communications			45,564				44,802
Printing, postage and supplies			3,997				3,893
Amortization of intangible assets			3,003				3,391
Mortgage banking costs			6,355				5,782
Other expense			13,337				8,408
Total other operating expense			340,384				305,812
Net income before taxes			106,889				208,401
Federal and state income taxes			23,195				45,905
Net income			83,694				162,496
Net income (loss) attributable to non-controlling interests			(9	)			128
Net income attributable to BOK Financial Corporation shareholders		$	83,703			$	162,368
Average shares outstanding:
Basic			64,290,105				66,331,775
Diluted			64,290,105				66,331,775
Net income per share:
Basic		$	1.29			$	2.43
Diluted		$	1.29			$	2.43

QUARTERLY EARNINGS TREND - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
(In thousands, except ratio and per share data)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Interest revenue		$	645,212			$	638,324			$	617,044			$	570,367			$	516,729
Interest expense			351,640				341,649				316,148				248,106				164,381
Net interest revenue			293,572				296,675				300,896				322,261				352,348
Provision for credit losses			8,000				6,000				7,000				17,000				16,000
Net interest revenue after provision for credit losses			285,572				290,675				293,896				305,261				336,348
Other operating revenue:
Brokerage and trading revenue			59,179				60,896				62,312				65,006				52,396
Transaction card revenue			25,493				28,847				26,387				26,003				25,621
Fiduciary and asset management revenue			55,305				51,408				52,256				52,997				50,657
Deposit service charges and fees			28,685				27,770				27,676				27,100				25,968
Mortgage banking revenue			18,967				12,834				13,356				15,141				14,367
Other revenue			12,935				15,035				15,865				14,250				16,970
Total fees and commissions			200,564				196,790				197,852				200,497				185,979
Other gains, net			4,269				40,452				1,474				12,618				2,251
Gain (loss) on derivatives, net			(8,633	)			8,592				(9,010	)			(8,159	)			(1,344	)
Gain (loss) on fair value option securities, net			(305	)			1,031				(203	)			(2,158	)			(2,962	)
Change in fair value of mortgage servicing rights			10,977				(14,356	)			8,039				9,261				(6,059	)
Loss on available for sale securities, net			(45,171	)			(27,626	)			-				(3,010	)			-
Total other operating revenue			161,701				204,883				198,152				209,049				177,865
Other operating expense:
Personnel			202,653				203,022				190,791				190,652				182,145
Business promotion			7,978				8,629				6,958				7,640				8,569
Charitable contributions to BOKF Foundation			-				1,542				23				1,142				-
Professional fees and services			12,010				16,288				13,224				12,777				13,048
Net occupancy and equipment			30,293				30,355				32,583				30,105				28,459
FDIC and other insurance			8,740				8,495				7,996				6,974				7,315
FDIC special assessment			6,454				43,773				-				-				-
Data processing and communications			45,564				45,584				45,672				45,307				44,802
Printing, postage and supplies			3,997				3,844				3,760				3,728				3,893
Amortization of intangible assets			3,003				3,543				3,474				3,474				3,391
Mortgage banking costs			6,355				8,085				8,357				8,300				5,782
Other expense			13,337				10,923				11,475				8,574				8,408
Total other operating expense			340,384				384,083				324,313				318,673				305,812
Net income before taxes			106,889				111,475				167,735				195,637				208,401
Federal and state income taxes			23,195				28,953				33,256				44,001				45,905
Net income			83,694				82,522				134,479				151,636				162,496
Net income (loss) attributable to non-controlling interests			(9	)			(53	)			(16	)			328				128
Net income attributable to BOK Financial Corporation shareholders		$	83,703			$	82,575			$	134,495			$	151,308			$	162,368
Average shares outstanding:
Basic			64,290,105				64,750,171				65,548,307				65,994,132				66,331,775
Diluted			64,290,105				64,750,171				65,548,307				65,994,132				66,331,775
Net income per share:
Basic		$	1.29			$	1.26			$	2.04			$	2.27			$	2.43
Diluted		$	1.29			$	1.26			$	2.04			$	2.27			$	2.43

FINANCIAL HIGHLIGHTS - UNAUDITED

BOK FINANCIAL CORPORATION

		Three Months Ended
(In thousands, except ratio and share data)		Mar. 31,				Dec. 31,				Sep. 30,				June 30,				Mar. 31,
Capital:
Period-end shareholders' equity		$	5,128,751			$	5,142,442			$	4,814,019			$	4,863,854			$	4,874,786
Risk weighted assets		$	38,952,555			$	38,820,979			$	38,791,023			$	38,218,164			$	37,192,197
Risk-based capital ratios:
Common equity tier 1			11.99	%			12.06	%			12.06	%			12.13	%			12.19	%
Tier 1			12.00	%			12.07	%			12.07	%			12.13	%			12.20	%
Total capital			13.15	%			13.16	%			13.16	%			13.24	%			13.21	%
Leverage ratio			9.42	%			9.45	%			9.52	%			9.75	%			9.94	%
Tangible common equity ratio1			8.21	%			8.29	%			7.74	%			7.79	%			8.46	%
Adjusted tangible common equity ratio1			7.92	%			8.02	%			7.35	%			7.49	%			8.22	%
Common stock:
Book value per share		$	79.50			$	79.15			$	73.31			$	73.28			$	73.19
Tangible book value per share		$	62.42			$	62.15			$	56.40			$	56.50			$	56.42
Market value per share:
High		$	92.08			$	87.52			$	92.41			$	90.91			$	106.47
Low		$	77.86			$	62.42			$	77.61			$	74.40			$	80.00
Cash dividends paid		$	35,568			$	35,739			$	35,655			$	35,879			$	36,006
Dividend payout ratio			42.49	%			43.28	%			26.51	%			23.71	%			22.18	%
Shares outstanding, net			64,515,035				64,967,177				65,664,840				66,369,208				66,600,833
Stock buy-back program:
Shares repurchased			616,630				700,237				700,500				266,000				447,071
Amount		$	51,727			$	49,710			$	58,961			$	22,366			$	44,100
Average price paid per share2		$	83.89			$	70.99			$	84.17			$	84.08			$	98.64
Performance ratios (quarter annualized):
Return on average assets			0.67	%			0.66	%			1.08	%			1.27	%			1.43	%
Return on average equity			6.53	%			6.64	%			10.88	%			12.28	%			13.61	%
Return on average tangible common equity1			8.31	%			8.56	%			14.08	%			15.86	%			17.71	%
Net interest margin			2.61	%			2.64	%			2.69	%			3.00	%			3.45	%
Efficiency ratio1,3			67.13	%			71.62	%			64.01	%			58.75	%			56.79	%
Other data:
Tax equivalent interest		$	2,100			$	2,112			$	2,214			$	2,200			$	2,285
Net unrealized loss on available for sale securities		$	(643,259	)		$	(616,624	)		$	(1,034,520	)		$	(898,906	)		$	(741,508	)
Mortgage banking:
Mortgage production revenue		$	3,525			$	(2,535	)		$	(1,887	)		$	(284	)		$	(633	)
Mortgage loans funded for sale		$	139,176			$	139,255			$	173,727			$	214,785			$	138,624
Add: Current period-end outstanding commitments			67,951				34,783				49,284				55,031				71,693
Less: Prior period end outstanding commitments			34,783				49,284				55,031				71,693				45,492
Total mortgage production volume		$	172,344			$	124,754			$	167,980			$	198,123			$	164,825
Mortgage loan refinances to mortgage loans funded for sale			10	%			10	%			9	%			8	%			9	%
Realized margin on funded mortgage loans			1.46	%			(0.98	)%			(0.94	)%			(0.14	)%			(1.25	)%
Production revenue as a percentage of production volume			2.05	%			(2.03	)%			(1.12	)%			(0.14	)%			(0.38	)%
Mortgage servicing revenue		$	15,442			$	15,369			$	15,243			$	15,425			$	15,000
Average outstanding principal balance of mortgage loans serviced for others		$	21,088,898			$	20,471,030			$	20,719,116			$	20,807,044			$	21,121,319
Average mortgage servicing revenue rates			0.29	%			0.30	%			0.29	%			0.30	%			0.29	%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net		$	(9,357	)		$	8,275			$	(8,980	)		$	(8,099	)		$	(1,711	)
Gain (loss) on fair value option securities, net			(305	)			1,031				(203	)			(2,158	)			(2,962	)
Gain (loss) on economic hedge of mortgage servicing rights			(9,662	)			9,306				(9,183	)			(10,257	)			(4,673	)
Gain (loss) on changes in fair value of mortgage servicing rights			10,977				(14,356	)			8,039				9,261				(6,059	)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue			1,315				(5,050	)			(1,144	)			(996	)			(10,732	)
Net interest revenue (expense) on fair value option securities4			(155	)			(101	)			(112	)			(232	)			187
Total economic benefit (cost) of changes in the fair value of mortgage servicing rights, net of economic hedges		$	1,160			$	(5,151	)		$	(1,256	)		$	(1,228	)		$	(10,545	)

¹ See Reconciliation of Non-GAAP Measures following.
² Excludes 1% excise tax on corporate stock repurchases.
³ Prior period ratios have been adjusted to be consistent with the current period presentation.
⁴ Actual interest earned on fair value option securities less internal transfer-priced cost of funds.

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES - UNAUDITED

BOK FINANCIAL CORPORATION

		Three Months Ended
(In thousands, except ratio and share data)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Reconciliation of tangible common equity ratio and adjusted tangible common equity ratio:
Total shareholders' equity		$	5,128,751			$	5,142,442			$	4,814,019			$	4,863,854			$	4,874,786
Less: Goodwill and intangible assets, net			1,101,643				1,104,728				1,110,553				1,113,995				1,117,438
Tangible common equity			4,027,108				4,037,714				3,703,466				3,749,859				3,757,348
Add: Unrealized gain (loss) on investment securities, net			(185,978	)			(171,903	)			(246,395	)			(189,152	)			(140,947	)
Add: Tax effect on unrealized gain (loss) on investment securities, net			43,740				40,430				57,949				44,486				33,149
Adjusted tangible common equity		$	3,884,870			$	3,906,241			$	3,515,020			$	3,605,193			$	3,649,550
Total assets		$	50,160,380			$	49,824,830			$	48,931,397			$	49,237,920			$	45,524,122
Less: Goodwill and intangible assets, net			1,101,643				1,104,728				1,110,553				1,113,995				1,117,438
Tangible assets		$	49,058,737			$	48,720,102			$	47,820,844			$	48,123,925			$	44,406,684
Tangible common equity ratio			8.21	%			8.29	%			7.74	%			7.79	%			8.46	%
Adjusted tangible common equity ratio			7.92	%			8.02	%			7.35	%			7.49	%			8.22	%
Reconciliation of return on average tangible common equity:
Total average shareholders' equity		$	5,152,061			$	4,933,917			$	4,902,119			$	4,941,352			$	4,837,567
Less: Average goodwill and intangible assets, net			1,103,090				1,107,949				1,112,217				1,115,652				1,119,123
Average tangible common equity		$	4,048,971			$	3,825,968			$	3,789,902			$	3,825,700			$	3,718,444
Net Income		$	83,703			$	82,575			$	134,495			$	151,308			$	162,368
Return on average tangible common equity			8.31	%			8.56	%			14.08	%			15.86	%			17.71	%
Calculation of efficiency ratio and efficiency ratio excluding adjustments:
Total other operating expense		$	340,384			$	384,083			$	324,313			$	318,673			$	305,812
Less: Amortization of intangible assets			3,003				3,543				3,474				3,474				3,391
Numerator for efficiency ratio			337,381				380,540				320,839				315,199				302,421
Less: FDIC special assessment			6,454				43,773				-				-				-
Less: Expenses related to sale of BOKF Insurance			-				3,436				-				-				-
Adjusted numerator for efficiency ratio		$	330,927			$	333,331			$	320,839			$	315,199			$	302,421
Net interest revenue		$	293,572			$	296,675			$	300,896			$	322,261			$	352,348
Tax-equivalent adjustment			2,100				2,112				2,214				2,200				2,285
Tax-equivalent net interest revenue			295,672				298,787				303,110				324,461				354,633
Total other operating revenue			161,701				204,883				198,152				209,049				177,865
Less: Loss on available for sale securities, net			(45,171	)			(27,626	)			-				(3,010	)			-
Denominator for efficiency ratio			502,544				531,296				501,262				536,520				532,498
Less: Gain on sale of BOKF Insurance			-				31,007				-				-				-
Adjusted denominator for efficiency ratio		$	502,544			$	500,289			$	501,262			$	536,520			$	532,498
Efficiency ratio			67.13	%			71.62	%			64.01	%			58.75	%			56.79	%
Efficiency ratio excluding adjustments			65.85	%			66.63	%			64.01	%			58.75	%			56.79	%
Information on net interest revenue and net interest margin excluding trading activities:
Net interest revenue		$	293,572			$	296,675			$	300,896			$	322,261			$	352,348
Less: Trading activities net interest revenue			(498	)			(3,305	)			(7,343	)			(3,461	)			70
Net interest revenue excluding trading activities			294,070				299,980				308,239				325,722				352,278
Tax-equivalent adjustment			2,100				2,112				2,214				2,200				2,285
Tax-equivalent net interest revenue excluding trading activities		$	296,170			$	302,092			$	310,453			$	327,922			$	354,563
Average interest-earning assets		$	44,846,886			$	44,327,237			$	44,012,300			$	42,731,533			$	40,781,257
Less: Average trading activities interest-earning assets			5,371,209				5,448,403				5,444,587				4,274,803				3,031,969
Average interest-earning assets excluding trading activities		$	39,475,677			$	38,878,834			$	38,567,713			$	38,456,730			$	37,749,288
Net interest margin on average interest-earning assets			2.61	%			2.64	%			2.69	%			3.00	%			3.45	%
Net interest margin on average trading activities interest-earning assets			(0.07	)%			(0.20	)%			(0.49	)%			(0.34	)%			-	%
Net interest margin on average interest-earning assets excluding trading activities			2.97	%			3.03	%			3.14	%			3.36	%			3.72	%
Reconciliation of pre-provision net revenue:
Net income before taxes		$	106,889			$	111,475			$	167,735			$	195,637			$	208,401
Provision for expected credit losses			8,000				6,000				7,000				17,000				16,000
Net income (loss) attributable to non-controlling interests			(9	)			(53	)			(16	)			328				128
Pre-provision net revenue		$	114,898			$	117,528			$	174,751			$	212,309			$	224,273
Reconciliation of adjusted net income and earnings per share:
Net income		$	83,703			$	82,575			$	134,495			$	151,308			$	162,368
Add: FDIC special assessment, net of tax			4,936				33,478				-				-				-
Less: Loss on repositioning of available for sale securities, net of tax			(34,547	)			(21,129	)			-				(2,302	)			-
Less: Gain on sale of BOKF Insurance, net of tax			-				23,715				-				-				-
Adjusted net income		$	123,186			$	113,467			$	134,495			$	153,610			$	162,368
Earnings per share		$	1.29			$	1.26			$	2.04			$	2.27			$	2.43
Add: FDIC special assessment, net of tax			0.08				0.52				-				-				-
Less: Loss on repositioning of available for sale securities, net of tax			(0.54	)			(0.33	)			-				(0.03	)			-
Less: Gain on sale of BOKF Insurance, net of tax			-				0.37				-				-				-
Adjusted earnings per share		$	1.91			$	1.74			$	2.04			$	2.30			$	2.43

Explanation of Non-GAAP Measures

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

The efficiency ratio measures the company's ability to use its assets and manage its liabilities effectively in the current period.

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

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

We believe adjusting net income and earnings per share for notable non-core items enhances comparability of results with prior periods, demonstrates the impact of significant items and provides a useful measure for determining the company's expenses that are core to our business operations and are expected to recur over time.

LOANS TREND - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Commercial:
Healthcare		$	4,245,939			$	4,143,233			$	4,083,134			$	3,991,387			$	3,899,341
Services			3,529,421				3,576,223				3,566,361				3,585,169				3,563,702
Energy			3,443,719				3,437,101				3,490,602				3,508,752				3,398,057
General business			3,913,788				3,647,212				3,579,742				3,449,208				3,356,249
Total commercial			15,132,867				14,803,769				14,719,839				14,534,516				14,217,349
Commercial real estate:
Multifamily			1,960,839				1,872,760				1,734,688				1,502,971				1,363,881
Industrial			1,343,970				1,475,165				1,432,629				1,349,709				1,309,435
Office			901,105				909,442				981,876				1,005,660				1,045,700
Retail			543,735				592,632				608,073				617,886				618,264
Residential construction and land development			83,906				95,052				100,465				106,370				102,828
Other commercial real estate			403,122				392,596				383,569				388,205				375,208
Total commercial real estate			5,236,677				5,337,647				5,241,300				4,970,801				4,815,316
Loans to individuals:
Residential mortgage			2,192,584				2,160,640				2,090,992				1,993,690				1,926,027
Residential mortgages guaranteed by U.S. government agencies			139,456				149,807				161,092				186,170				224,753
Personal			1,470,976				1,453,105				1,510,795				1,552,482				1,566,608
Total loans to individuals			3,803,016				3,763,552				3,762,879				3,732,342				3,717,388
Total		$	24,172,560			$	23,904,968			$	23,724,018			$	23,237,659			$	22,750,053

LOANS MANAGED BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Texas:
Commercial		$	7,515,070			$	7,384,107			$	7,249,963			$	7,223,820			$	7,103,166
Commercial real estate			1,935,728				1,987,037				1,873,477				1,748,796				1,675,831
Loans to individuals			964,464				914,134				961,299				974,911				992,343
Total Texas			10,415,262				10,285,278				10,084,739				9,947,527				9,771,340
Oklahoma:
Commercial			3,478,146				3,275,907				3,384,627				3,251,547				3,178,934
Commercial real estate			605,419				606,515				601,087				573,559				574,708
Loans to individuals			2,176,268				2,147,782				2,100,974				2,079,311				2,049,472
Total Oklahoma			6,259,833				6,030,204				6,086,688				5,904,417				5,803,114
Colorado:
Commercial			2,244,416				2,273,179				2,219,460				2,179,473				2,148,066
Commercial real estate			766,100				769,329				710,552				683,973				646,537
Loans to individuals			221,291				228,257				227,569				223,200				231,368
Total Colorado			3,231,807				3,270,765				3,157,581				3,086,646				3,025,971
Arizona:
Commercial			1,149,394				1,143,682				1,173,491				1,177,778				1,115,973
Commercial real estate			1,007,972				1,003,331				1,014,151				926,750				881,465
Loans to individuals			218,664				248,873				260,282				242,102				240,556
Total Arizona			2,376,030				2,395,886				2,447,924				2,346,630				2,237,994
Kansas/Missouri:
Commercial			320,609				331,179				307,725				309,148				318,782
Commercial real estate			497,036				511,947				547,708				516,299				489,951
Loans to individuals			141,767				144,958				132,137				138,960				129,580
Total Kansas/Missouri			959,412				988,084				987,570				964,407				938,313
New Mexico:
Commercial			317,651				291,736				297,714				287,443				280,945
Commercial real estate			352,559				389,106				405,989				425,472				449,715
Loans to individuals			67,814				67,485				69,418				64,803				65,770
Total New Mexico			738,024				748,327				773,121				777,718				796,430
Arkansas:
Commercial			107,581				103,979				86,859				105,307				71,483
Commercial real estate			71,863				70,382				88,336				95,952				97,109
Loans to individuals			12,748				12,063				11,200				9,055				8,299
Total Arkansas			192,192				186,424				186,395				210,314				176,891
Total BOK Financial		$	24,172,560			$	23,904,968			$	23,724,018			$	23,237,659			$	22,750,053

Loans attributed to a principal market may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION

(In thousands)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Oklahoma:
Demand		$	3,365,529			$	3,586,091			$	4,019,019			$	4,273,136			$	4,369,944
Interest-bearing:
Transaction			12,362,193				10,929,704				9,970,955				9,979,534				9,468,100
Savings			509,775				500,313				508,619				531,536				564,829
Time			2,136,583				1,984,336				2,019,749				1,945,916				942,787
Total interest-bearing			15,008,551				13,414,353				12,499,323				12,456,986				10,975,716
Total Oklahoma			18,374,080				17,000,444				16,518,342				16,730,122				15,345,660
Texas:
Demand			2,201,561				2,306,334				2,599,998				2,876,568				3,154,789
Interest-bearing:
Transaction			5,125,834				5,035,856				5,046,288				4,532,093				4,366,932
Savings			157,108				155,652				154,863				162,704				175,012
Time			605,526				492,753				436,218				377,424				321,774
Total interest-bearing			5,888,468				5,684,261				5,637,369				5,072,221				4,863,718
Total Texas			8,090,029				7,990,595				8,237,367				7,948,789				8,018,507
Colorado:
Demand			1,316,971				1,633,672				1,598,622				1,726,130				1,869,194
Interest-bearing:
Transaction			1,951,232				1,921,605				1,888,026				1,825,295				2,126,435
Savings			63,675				67,646				63,129				66,968				72,548
Time			237,656				201,393				185,030				148,840				128,583
Total interest-bearing			2,252,563				2,190,644				2,136,185				2,041,103				2,327,566
Total Colorado			3,569,534				3,824,316				3,734,807				3,767,233				4,196,760
New Mexico:
Demand			683,643				794,467				853,571				912,218				997,364
Interest-bearing:
Transaction			1,085,946				886,089				1,049,903				712,541				674,328
Savings			95,944				95,453				97,753				102,729				111,771
Time			298,556				258,195				217,535				179,548				137,875
Total interest-bearing			1,480,446				1,239,737				1,365,191				994,818				923,974
Total New Mexico			2,164,089				2,034,204				2,218,762				1,907,036				1,921,338
Arizona:
Demand			502,143				524,167				522,142				592,144				780,051
Interest-bearing:
Transaction			1,181,539				1,174,715				903,535				800,970				687,527
Savings			12,024				11,636				12,340				14,489				16,993
Time			46,962				41,884				36,689				31,248				27,755
Total interest-bearing			1,240,525				1,228,235				952,564				846,707				732,275
Total Arizona			1,742,668				1,752,402				1,474,706				1,438,851				1,512,326
Kansas/Missouri:
Demand			316,041				326,496				351,236				363,534				393,321
Interest-bearing:
Transaction			985,706				966,166				981,091				1,014,247				1,040,009
Savings			13,095				13,821				14,331				16,316				18,292
Time			30,411				23,955				22,437				16,176				13,061
Total interest-bearing			1,029,212				1,003,942				1,017,859				1,046,739				1,071,362
Total Kansas/Missouri			1,345,253				1,330,438				1,369,095				1,410,273				1,464,683
Arkansas:
Demand			28,168				25,266				29,635				38,818				42,312
Interest-bearing:
Transaction			55,735				49,966				57,381				43,301				71,158
Savings			2,776				2,564				2,898				3,195				3,228
Time			11,215				9,506				9,559				7,225				4,775
Total interest-bearing			69,726				62,036				69,838				53,721				79,161
Total Arkansas			97,894				87,302				99,473				92,539				121,473
Total BOK Financial		$	35,383,547			$	34,019,701			$	33,652,552			$	33,294,843			$	32,580,747

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Tax-equivalent asset yields:
Interest-bearing cash and cash equivalents			4.96	%			5.30	%			5.43	%			5.41	%			4.28	%
Trading securities			5.12	%			5.05	%			4.76	%			4.50	%			4.52	%
Investment securities, net of allowance			1.42	%			1.42	%			1.43	%			1.44	%			1.46	%
Available for sale securities			3.48	%			3.27	%			3.11	%			3.00	%			2.87	%
Fair value option securities			3.59	%			3.57	%			4.61	%			5.07	%			5.17	%
Restricted equity securities			8.59	%			8.01	%			7.88	%			7.31	%			7.34	%
Residential mortgage loans held for sale			6.25	%			6.59	%			6.27	%			5.85	%			5.79	%
Loans			7.40	%			7.36	%			7.25	%			7.03	%			6.67	%
Allowance for loan losses
Loans, net of allowance			7.48	%			7.45	%			7.33	%			7.10	%			6.74	%
Total tax-equivalent yield on earning assets			5.73	%			5.64	%			5.49	%			5.29	%			5.06	%
Cost of interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing transaction			3.68	%			3.44	%			3.18	%			2.60	%			1.91	%
Savings			0.57	%			0.53	%			0.47	%			0.21	%			0.10	%
Time			4.54	%			4.13	%			3.96	%			3.27	%			1.95	%
Total interest-bearing deposits			3.69	%			3.43	%			3.17	%			2.56	%			1.83	%
Funds purchased and repurchase agreements			4.05	%			4.79	%			4.81	%			4.58	%			3.33	%
Other borrowings			5.56	%			5.55	%			5.48	%			5.12	%			4.73	%
Subordinated debt			7.09	%			7.09	%			7.02	%			6.79	%			6.40	%
Total cost of interest-bearing liabilities			4.08	%			3.98	%			3.81	%			3.27	%			2.43	%
Tax-equivalent net interest revenue spread			1.65	%			1.66	%			1.68	%			2.02	%			2.63	%
Effect of noninterest-bearing funding sources and other			0.96	%			0.98	%			1.01	%			0.98	%			0.82	%
Tax-equivalent net interest margin			2.61	%			2.64	%			2.69	%			3.00	%			3.45	%

Yield calculations are shown on a tax equivalent basis at the statutory federal and state rates for the periods presented. The yield calculations exclude security trades that have been recorded on trade date with no corresponding interest income and the unrealized gains and losses. The yield calculation also includes average loan balances for which the accrual of interest has been discontinued and are net of unearned income. Yield/rate calculations are generally based on the conventions that determine how interest income and expense is accrued.

CREDIT QUALITY INDICATORS - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended
(In thousands, except ratios)		Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				June 30, 2023				Mar. 31, 2023
Nonperforming assets:
Nonaccruing loans:
Commercial:
Healthcare		$	49,307			$	81,529			$	41,836			$	36,753			$	37,247
Energy			14,991				17,843				19,559				20,037				127
Services			3,319				3,616				2,820				4,541				8,097
General business			7,003				7,143				6,483				11,946				8,961
Total commercial			74,620				110,131				70,698				73,277				54,432
Commercial real estate			22,087				7,320				7,418				17,395				21,668
Loans to individuals:
Permanent mortgage			13,449				18,056				30,954				29,973				29,693
Permanent mortgage guaranteed by U.S. government agencies			9,217				9,709				10,436				11,473				14,302
Personal			142				253				79				133				200
Total loans to individuals			22,808				28,018				41,469				41,579				44,195
Total nonaccruing loans			119,515				145,469				119,585				132,251				120,295
Real estate and other repossessed assets			2,860				2,875				3,753				4,227				12,651
Total nonperforming assets		$	122,375			$	148,344			$	123,338			$	136,478			$	132,946
Total nonperforming assets excluding those guaranteed by U.S. government agencies		$	113,158			$	138,635			$	112,902			$	125,005			$	118,644
Accruing loans 90 days past due1		$	-			$	170			$	64			$	220			$	76
Gross charge-offs		$	7,060			$	5,007			$	10,593			$	8,049			$	3,667
Recoveries			(1,600	)			(911	)			(4,062	)			(1,346	)			(2,898	)
Net charge-offs		$	5,460			$	4,096			$	6,531			$	6,703			$	769
Provision for loan losses		$	9,960			$	9,105			$	15,931			$	19,957			$	14,525
Provision for credit losses from off-balance sheet unfunded loan commitments			(1,658	)			(3,627	)			(7,336	)			(3,003	)			2,024
Provision for expected credit losses from mortgage banking activities			(265	)			530				(1,474	)			78				(488	)
Provision for credit losses related to held-to maturity (investment) securities portfolio			(37	)			(8	)			(121	)			(32	)			(61	)
Total provision for credit losses		$	8,000			$	6,000			$	7,000			$	17,000			$	16,000
Allowance for loan losses to period end loans			1.17	%			1.16	%			1.15	%			1.13	%			1.10	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans			1.36	%			1.36	%			1.37	%			1.39	%			1.37	%
Nonperforming assets to period end loans and repossessed assets			0.51	%			0.62	%			0.52	%			0.59	%			0.58	%
Net charge-offs (annualized) to average loans			0.09	%			0.07	%			0.11	%			0.12	%			0.01	%
Allowance for loan losses to nonaccruing loans2			255.33	%			204.13	%			249.31	%			217.52	%			235.36	%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans2			298.23	%			240.20	%			297.50	%			267.15	%			294.74	%

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

SEGMENTS - UNAUDITED
BOK FINANCIAL CORPORATION

		Three Months Ended									1Q24 vs 4Q23						1Q24 vs 1Q23
(In thousands, except ratios)		Mar. 31, 2024			Dec. 31, 2023			Mar. 31, 2023			Change			% Change			Change			% Change
Commercial Banking:
Net interest revenue		$	245,121		$	267,879		$	284,056		$	(22,758	)		(8.5	)%	$	(38,935	)		(13.7	)%
Fees and commissions revenue			50,630			60,937			55,835			(10,307	)		(16.9	)%		(5,205	)		(9.3	)%
Combined net interest and fee revenue			295,751			328,816			339,891			(33,065	)		(10.1	)%		(44,140	)		(13.0	)%
Other operating expense			70,095			81,899			73,134			(11,804	)		(14.4	)%		(3,039	)		(4.2	)%
Corporate expense allocations			18,397			18,040			17,718			357			2.0	%		679			3.8	%
Net income			153,250			171,084			190,231			(17,834	)		(10.4	)%		(36,981	)		(19.4	)%
Average assets			29,806,817			29,346,459			28,162,934			460,358			1.6	%		1,643,883			5.8	%
Average loans			20,067,170			19,928,602			18,750,426			138,568			0.7	%		1,316,744			7.0	%
Average deposits			15,730,241			15,493,326			15,861,285			236,915			1.5	%		(131,044	)		(0.8	)%
Consumer Banking:
Net interest revenue		$	102,149		$	114,396		$	109,381		$	(12,247	)		(10.7	)%	$	(7,232	)		(6.6	)%
Fees and commissions revenue			36,207			30,075			30,581			6,132			20.4	%		5,626			18.4	%
Combined net interest and fee revenue			138,356			144,471			139,962			(6,115	)		(4.2	)%		(1,606	)		(1.1	)%
Other operating expense			53,447			55,079			50,198			(1,632	)		(3.0	)%		3,249			6.5	%
Corporate expense allocations			14,172			12,705			11,622			1,467			11.5	%		2,550			21.9	%
Net income			53,804			53,695			50,683			109			0.2	%		3,121			6.2	%
Average assets			9,391,981			9,342,840			9,934,511			49,141			0.5	%		(542,530	)		(5.5	)%
Average loans			1,913,586			1,877,303			1,747,237			36,283			1.9	%		166,349			9.5	%
Average deposits			7,901,167			7,890,032			8,248,541			11,135			0.1	%		(347,374	)		(4.2	)%
Wealth Management:
Net interest revenue		$	40,109		$	41,643		$	54,106		$	(1,534	)		(3.7	)%	$	(13,997	)		(25.9	)%
Fees and commissions revenue			118,704			119,872			108,911			(1,168	)		(1.0	)%		9,793			9.0	%
Combined net interest and fee revenue			158,813			161,515			163,017			(2,702	)		(1.7	)%		(4,204	)		(2.6	)%
Other operating expense			99,535			96,275			82,039			3,260			3.4	%		17,496			21.3	%
Corporate expense allocations			14,558			14,198			12,360			360			2.5	%		2,198			17.8	%
Net income			34,165			62,690			52,447			(28,525	)		(45.5	)%		(18,282	)		(34.9	)%
Average assets			15,759,328			14,879,450			11,663,096			879,878			5.9	%		4,096,232			35.1	%
Average loans			2,198,803			2,154,416			2,201,622			44,387			2.1	%		(2,819	)		(0.1	)%
Average deposits			9,237,965			8,085,643			7,432,413			1,152,322			14.3	%		1,805,552			24.3	%
Fiduciary assets			60,365,292			59,798,693			57,457,925			566,599			0.9	%		2,907,367			5.1	%
Assets under management or administration			105,530,903			104,736,999			102,310,126			793,904			0.8	%		3,220,777			3.1	%

SOURCE: BOK Financial Corp

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