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

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

TULSA, Okla., Jan. 22, 2020 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the fourth quarter of 2019 of $110 million, or $1.56 per diluted common share.

CEO Commentary

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

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

2019 Financial Highlights

• Net income for the year ended December 31, 2019 totaled $500.8 million or $7.03 per diluted share compared to $445.6 million or $6.63 per diluted share for the year ended December 31, 2018.
• Net interest revenue totaled $1.1 billion, an increase of $128.0 million. CoBiz added $158.5 million to net interest revenue, including $37.8 million of net purchase accounting discount accretion for 2019. CoBiz added $43.1 million to net interest revenue for 2018. Net interest margin was 3.11 percent for 2019 compared to 3.20 percent for 2018.
• Fees and commissions revenue increased $59.0 million to $702.2 million in 2019. Strong growth in brokerage and trading revenue and mortgage banking revenue, which were both positively affected by lower mortgage interest rates in 2019, contributed to the majority of the increase.
• Operating expense totaled $1.1 billion in 2019, an increase of $104.2 million. We incurred $17.2 million of closing and integration costs in 2019 compared to $16.6 million in 2018. Expenses related to CoBiz operations were $84.0 million in 2019 and $29.7 million in 2018. Excluding these costs, operating expense increased $49.3 million or 5 percent, primarily related to growth in personnel expense.
• Period-end loans were up $94 million to $21.8 billion at December 31, 2019 and period-end deposits grew $2.4 billion to $27.6 billion.

Fourth Quarter 2019 Financial Highlights

• Net income was $110.4 million or $1.56 per diluted share for the fourth quarter of 2019 and $142.2 million or $2.00 per diluted share for the third quarter of 2019.
• Net interest revenue totaled $270.2 million, a decrease of $8.8 million. Net interest margin was 2.88 percent compared to 3.01 percent in the third quarter of 2019. Lower loan discount accretion, changes in funding mix, and the two recent federal funds rate cuts by the Federal Reserve contributed to compression in the net interest margin.

Fourth Quarter 2019 Financial Highlights con't

• Fees and commissions revenue totaled $179.4 million, a decrease of $6.7 million, primarily due to a seasonal decline in mortgage banking revenue.
• Operating expense increased $9.5 million to $288.8 million. Personnel expense increased $5.8 million while non-personnel expense increased $3.7 million over the third quarter of 2019.
• A $19.0 million provision for credit losses was recorded in the fourth quarter of 2019 compared to $12.0 million in the third quarter of 2019. The combined allowance for credit losses totaled $212 million or 0.98 percent of outstanding loans compared to $206 million or 0.92 percent in the previous quarter.
• Average loans decreased $177 million to $22.2 billion while period-end loans decreased $534 million to $21.8 billion, largely due to decreases in commercial and commercial real estate loans.
• Average deposits increased $1.4 billion to $27.1 billion and period-end deposits increased $1.5 billion to $27.6 billion.
• Commercial banking contributed $81.7 million to net income, a decrease of $18.9 million compared to the prior quarter. Net interest revenue decreased by $16.7 million due to a decrease in loan volume combined with decreased yields. Average loans decreased by $126 million to $19.1 billion. Fee revenue decreased $2.8 million, largely due to lower syndication fees. Average deposits increased $587 million to $11.4 billion, including an increase in interest-bearing transaction deposits partially offset by a decrease in demand deposits.
• Consumer banking contributed $8.3 million to net income, decreasing $8.4 million. Net interest revenue decreased $5.3 million, largely due to a lower yield on deposits sold to our Funds Management unit. Fee revenue decreased $6.6 million. A seasonal decline in mortgage production reduced mortgage banking revenue by $4.8 million. Mortgage production volume decreased $278 million to $635 million and gain on sale margin decreased 7 basis points to 1.44 percent.
• Wealth Management contributed $22.9 million to net income, consistent with the prior quarter. Fee revenue increased $3.3 million, largely related to brokerage and trading revenue, partially offset by a $1.2 million decrease in net interest revenue. Total operating expenses increased $3.1 million, primarily related to variable compensation that is related to revenue growth. Assets under management or administration were $82.7 billion at December 31, 2019 compared to $80.8 billion at September 30, 2019. Fiduciary assets totaled $52.4 billion at December 31, 2019 and $49.3 billion at September 30, 2019.

Net Interest Revenue

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

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

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

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

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

Fees and Commissions Revenue

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

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

Operating Expense

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

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

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

Loans, Deposits and Capital

Loans

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

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

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

Deposits

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

Capital

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

The company's tangible common equity ratio, a non-GAAP measure, was 8.98 percent at December 31, 2019 and 8.72 percent at September 30, 2019. The tangible common equity ratio is primarily based on total shareholders' equity, which includes unrealized gains and losses on available for sale securities. The company has elected to exclude unrealized gains and losses from available for sale securities from its calculation of Tier 1 capital for regulatory capital purposes, consistent with the treatment under the previous capital rules.

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

Credit Quality

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

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

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

Potential problem loans, which are defined as performing loans that, based on known information, cause management concern as to the borrowers' ability to continue to perform, totaled $160 million at December 31, compared to $143 million at September 30. The increase largely resulted from energy loans, partially offset by a decrease in loans secured by commercial real estate.

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

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

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

Securities and Derivatives

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

The company also maintains a portfolio of residential mortgage-backed securities issued by U.S. government agencies and interest rate derivative contracts as an economic hedge of the changes in the fair value of our mortgage servicing rights. This portfolio of fair value option securities decreased $718 million to $1.1 billion at December 31, 2019.

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

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on Wednesday, January 22, 2020 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-6671 and referencing conference ID # 13697774.

About BOK Financial Corporation

BOK Financial Corporation is a $42 billion regional financial services company headquartered in Tulsa, Oklahoma with $83 billion in assets under management and administration. The company's stock is publicly traded on NASDAQ under the Global Select market listings (BOKF). BOK Financial Corporation's holdings include BOKF, NA; BOK Financial Securities, Inc., BOK Financial Private Wealth, Inc. and BOK Financial Insurance, Inc. BOKF, NA operates TransFund, Cavanal Hill Investment Management and BOK Financial Asset Management, Inc. BOKF, NA operates banking divisions across eight states as: Bank of Albuquerque; Bank of Oklahoma; Bank of Texas; and BOK Financial in Arizona, Arkansas, Colorado, Kansas and Missouri; as well as having limited purpose offices in Nebraska, Milwaukee and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of December 31, 2019 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial, the financial services industry and the economy generally. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,”  “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that BOK Financial's acquisitions, including its latest acquisition of CoBiz Financial, Inc., and other growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in commodity prices, interest rates and interest rate relationships, inflation, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK Financial and its affiliates undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
	Dec. 31, 2019				Sept. 30, 2019
ASSETS
Cash and due from banks	$	735,836			$	761,130
Interest-bearing cash and cash equivalents	522,985				465,458
Trading securities	1,623,921				1,675,212
Investment securities	293,418				304,224
Available for sale securities	11,269,643				11,024,551
Fair value option securities	1,098,577				1,816,398
Restricted equity securities	460,552				479,018
Residential mortgage loans held for sale	182,271				282,487
Loans:
Commercial	14,031,650				14,424,625
Commercial real estate	4,433,783				4,626,057
Residential mortgage	2,084,172				2,117,303
Personal	1,201,382				1,117,382
Total loans	21,750,987				22,285,367
Allowance for loan losses	(210,759		)		(204,432		)
Loans, net of allowance	21,540,228				22,080,935
Premises and equipment, net	535,519				516,597
Receivables	231,811				219,420
Goodwill	1,048,091				1,048,091
Intangible assets, net	125,271				124,320
Mortgage servicing rights	201,886				193,661
Real estate and other repossessed assets, net	20,359				21,026
Derivative contracts, net	323,375				352,019
Cash surrender value of bank-owned life insurance	389,879				387,035
Receivable on unsettled securities sales	1,020,404				904,630
Other assets	547,995				470,993
TOTAL ASSETS	$	42,172,021			$	43,127,205
LIABILITIES AND EQUITY
Deposits:
Demand	$	9,461,291			$	9,844,397
Interest-bearing transaction	15,391,752				13,521,545
Savings	550,276				557,593
Time	2,217,849				2,243,541
Total deposits	27,621,168				26,167,076
Funds purchased and repurchase agreements	3,818,350				3,413,051
Other borrowings	4,527,055				6,822,334
Subordinated debentures	275,923				275,909
Accrued interest, taxes and expense	259,701				218,775
Due on unsettled securities purchases	182,547				703,448
Derivative contracts, net	251,128				336,791
Other liabilities	372,230				352,156
TOTAL LIABILITIES	37,308,102				38,289,540
Shareholders' equity:
Capital, surplus and retained earnings	4,750,872				4,695,263
Accumulated other comprehensive gain	104,923				133,753
TOTAL SHAREHOLDERS' EQUITY	4,855,795				4,829,016
Non-controlling interests	8,124				8,649
TOTAL EQUITY	4,863,919				4,837,665
TOTAL LIABILITIES AND EQUITY	$	42,172,021			$	43,127,205

AVERAGE BALANCE SHEETS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Three Months Ended
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
ASSETS
Interest-bearing cash and cash equivalents	$	573,203			$	500,823			$	535,491			$	537,903			$	563,132
Trading securities	1,672,426				1,696,568				1,757,335				1,968,399				1,929,601
Investment securities	298,567				308,090				328,482				343,282				364,737
Available for sale securities	11,333,524				10,747,439				9,435,668				8,883,054				8,704,963
Fair value option securities	1,521,528				1,553,879				898,772				594,349				277,575
Restricted equity securities	479,687				476,781				413,812				395,432				362,729
Residential mortgage loans held for sale	203,535				203,319				192,102				145,040				179,553
Loans:
Commercial	14,344,534				14,507,185				14,175,057				13,966,521				13,587,344
Commercial real estate	4,532,649				4,652,534				4,656,861				4,602,149				4,747,784
Residential mortgage	2,130,646				2,129,421				2,146,315				2,193,334				2,222,063
Personal	1,228,171				1,123,778				1,026,172				1,004,061				1,022,140
Total loans	22,236,000				22,412,918				22,004,405				21,766,065				21,579,331
Allowance for loan losses	(205,417		)		(201,714		)		(205,532		)		(206,092		)		(209,613		)
Total loans, net	22,030,583				22,211,204				21,798,873				21,559,973				21,369,718
Total earning assets	38,113,053				37,698,103				35,360,535				34,427,432				33,752,008
Cash and due from banks	690,806				717,338				703,294				705,411				731,700
Derivative contracts, net	311,542				331,834				328,802				262,927				299,319
Cash surrender value of bank-owned life insurance	388,012				385,190				384,974				382,538				379,893
Receivable on unsettled securities sales	1,973,604				1,742,794				1,437,462				1,224,700				799,548
Other assets	2,736,337				2,705,089				2,629,710				2,669,673				2,423,275
TOTAL ASSETS	$	44,213,354			$	43,580,348			$	40,844,777			$	39,672,681			$	38,385,743
LIABILITIES AND EQUITY
Deposits:
Demand	$	9,612,533			$	9,759,710			$	9,883,965			$	9,988,088			$	10,648,683
Interest-bearing transaction	14,685,385				13,131,542				12,512,282				11,931,539				11,773,651
Savings	554,605				557,122				558,738				541,575				526,275
Time	2,247,717				2,251,800				2,207,391				2,153,277				2,146,786
Total deposits	27,100,240				25,700,174				25,162,376				24,614,479				25,095,395
Funds purchased and repurchase agreements	4,120,610				3,106,163				2,066,950				2,033,036				1,205,568
Other borrowings	6,247,194				8,125,023				7,175,617				7,040,279				6,361,141
Subordinated debentures	275,916				275,900				275,887				275,882				276,378
Derivative contracts, net	276,078				300,051				283,484				273,786				268,848
Due on unsettled securities purchases	784,174				745,893				821,688				453,937				493,887
Other liabilities	561,654				547,144				460,732				501,788				341,438
TOTAL LIABILITIES	39,365,866				38,800,348				36,246,734				35,193,187				34,042,655
Total equity	4,847,488				4,780,000				4,598,043				4,479,494				4,343,088
TOTAL LIABILITIES AND EQUITY	$	44,213,354			$	43,580,348			$	40,844,777			$	39,672,681			$	38,385,743

STATEMENTS OF EARNINGS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except per share data)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2019				2018				2019				2018
Interest revenue	$	369,857			$	365,592			$	1,531,958			$	1,228,426
Interest expense	99,608				79,906				419,079				243,559
Net interest revenue	270,249				285,686				1,112,879				984,867
Provision for credit losses	19,000				9,000				44,000				8,000
Net interest revenue after provision for credit losses	251,249				276,686				1,068,879				976,867
Other operating revenue:
Brokerage and trading revenue	43,843				28,101				159,826				108,323
Transaction card revenue	22,548				20,664				87,216				84,025
Fiduciary and asset management revenue	45,021				43,665				177,025				184,703
Deposit service charges and fees	27,331				29,393				112,485				112,153
Mortgage banking revenue	25,396				21,880				107,541				97,787
Other revenue	15,283				16,404				58,108				56,185
Total fees and commissions	179,422				160,107				702,201				643,176
Other gains (losses), net	(1,649		)		(8,305		)		9,351				(2,265		)
Gain (loss) on derivatives, net	(4,644		)		11,167				14,951				(422		)
Gain (loss) on fair value option securities, net	(8,328		)		(282		)		15,787				(25,572		)
Change in fair value of mortgage servicing rights	9,297				(24,233		)		(53,517		)		4,668
Gain (loss) on available for sale securities, net	4,487				(1,999		)		5,597				(2,801		)
Total other operating revenue	178,585				136,455				694,370				616,784
Other operating expense:
Personnel	168,422				160,706				660,565				583,131
Business promotion	8,787				9,207				35,662				30,523
Charitable contributions to BOKF Foundation	2,000				2,846				3,000				2,846
Professional fees and services	13,408				20,712				54,861				59,099
Net occupancy and equipment	26,316				27,780				110,275				97,981
Insurance	5,393				4,248				20,906				23,318
Data processing and communications	31,884				27,575				124,983				114,796
Printing, postage and supplies	3,700				5,232				16,517				17,169
Net losses and operating expenses of repossessed assets	2,403				2,581				6,707				17,052
Amortization of intangible assets	5,225				5,331				20,618				9,620
Mortgage banking costs	14,259				11,518				50,685				46,298
Other expense	6,998				6,907				27,602				26,333
Total other operating expense	288,795				284,643				1,132,381				1,028,166
Net income before taxes	141,039				128,498				630,868				565,485
Federal and state income taxes	30,257				20,121				130,183				119,061
Net income	110,782				108,377				500,685				446,424
Net income (loss) attributable to non-controlling interests	430				(79		)		(73		)		778
Net income attributable to BOK Financial Corporation shareholders	$	110,352			$	108,456			$	500,758			$	445,646
Average shares outstanding:
Basic	70,295,899				71,808,029				70,787,700				66,628,640
Diluted	70,309,644				71,833,334				70,802,612				66,662,273
Net income per share:
Basic	$	1.56			$	1.50			$	7.03			$	6.63
Diluted	$	1.56			$	1.50			$	7.03			$	6.63

FINANCIAL HIGHLIGHTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and share data)
	Three Months Ended
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Capital:
Period-end shareholders' equity	$	4,855,795			$	4,829,016			$	4,709,438			$	4,522,873			$	4,432,109
Risk weighted assets	$	31,671,519			$	32,159,139			$	32,040,741			$	31,601,558			$	30,742,295
Risk-based capital ratios:
Common equity tier 1	11.39%				11.06%				10.84%				10.71%				10.92%
Tier 1	11.39%				11.06%				10.84%				10.71%				10.92%
Total capital	12.94%				12.56%				12.34%				12.24%				12.50%
Leverage ratio	8.40%				8.41%				8.75%				8.76%				8.96%
Tangible common equity ratio1	8.98%				8.72%				8.69%				8.64%				8.82%
Common stock:
Book value per share	$	68.80			$	68.15			$	66.15			$	63.30			$	61.45
Tangible book value per share	52.17				51.60				49.68				46.82				45.03
Market value per share:
High	$	88.28			$	84.35			$	88.17			$	93.72			$	98.29
Low	$	71.85			$	72.96			$	72.60			$	72.11			$	69.96
Cash dividends paid	$	36,011			$	35,472			$	35,631			$	35,885			$	35,977
Dividend payout ratio	32.63%				24.94%				25.90%				32.44%				33.17%
Shares outstanding, net	70,579,598				70,858,010				71,193,770				71,449,982				72,122,932
Stock buy-back program:
Shares repurchased	280,000				336,713				250,000				705,609				525,000
Amount	$	22,844			$	25,937			$	20,125			$	60,577			$	45,057
Average price per share	$	81.59			$	77.03			$	80.50			$	85.85			$	85.82
Performance ratios (quarter annualized):
Return on average assets	0.99%				1.29%				1.35%				1.13%				1.12%
Return on average equity	9.05%				11.83%				12.02%				10.04%				9.93%
Net interest margin	2.88%				3.01%				3.30%				3.30%				3.40%
Efficiency ratio	63.65%				59.31%				59.51%				64.80%				63.25%
Reconciliation of non-GAAP measures:
1  Tangible common equity ratio:
Total shareholders' equity	$	4,855,795			$	4,829,016			$	4,709,438			$	4,522,873			$	4,432,109
Less: Goodwill and intangible assets, net	1,173,362				1,172,411				1,172,564				1,177,573				1,184,112
Tangible common equity	$	3,682,433			$	3,656,605			$	3,536,874			$	3,345,300			$	3,247,997
Total assets	$	42,172,021			$	43,127,205			$	41,893,073			$	39,882,962			$	38,020,504
Less: Goodwill and intangible assets, net	1,173,362				1,172,411				1,172,564				1,177,573				1,184,112
Tangible assets	$	40,998,659			$	41,954,794			$	40,720,509			$	38,705,389			$	36,836,392
Tangible common equity ratio	8.98%				8.72%				8.69%				8.64%				8.82%
Other data:
Tax equivalent interest	$	2,726			$	2,936			$	3,481			$	2,529			$	3,067
Net unrealized gain (loss) on available for sale securities	$	138,149			$	178,060			$	131,780			$	(2,609	)		$	(95,271	)
Mortgage banking:
Mortgage production revenue	$	9,169			$	13,814			$	11,869			$	7,868			$	5,073
Mortgage loans funded for sale	$	855,643			$	877,280			$	729,841			$	510,527			$	497,353
Add: current period-end outstanding commitments	158,460				379,377				344,087				263,434				160,848
Less: prior period end outstanding commitments	379,377				344,087				263,434				160,848				197,752
Total mortgage production volume	$	634,726			$	912,570			$	810,494			$	613,113			$	460,449
Mortgage loan refinances to mortgage loans funded for sale	57		%		56		%		31		%		30		%		23		%
Gain on sale margin	1.44		%		1.51		%		1.46		%		1.28		%		1.10		%
Mortgage servicing revenue	$	16,227			$	16,366			$	16,262			$	15,966			$	16,807
Average outstanding principal balance of mortgage loans serviced for others	20,856,446				21,172,874				21,418,690				21,581,835				21,706,541
Average mortgage servicing revenue rates	0.31		%		0.31		%		0.30		%		0.30		%		0.31		%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(4,714	)		$	3,742			$	11,128			$	4,432			$	12,162
Gain (loss) on fair value option securities, net	(8,328		)		4,597				9,853				9,665				(282		)
Gain (loss) on economic hedge of mortgage servicing rights	(13,042		)		8,339				20,981				14,097				11,880
Gain (loss) on changes in fair value of mortgage servicing rights	9,297				(12,593		)		(29,555		)		(20,666		)		(24,233		)
Loss on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	(3,745		)		(4,254		)		(8,574		)		(6,569		)		(12,353		)
Net interest revenue on fair value option securities2	1,544				1,245				1,296				1,129				695
Total economic cost of changes in the fair value of mortgage servicing rights, net of economic hedges	$	(2,201	)		$	(3,009	)		$	(7,278	)		$	(5,440	)		$	(11,658	)

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

QUARTERLY EARNINGS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratio and per share data)
	Three Months Ended
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Interest revenue	$	369,857			$	395,207			$	390,820			$	376,074			$	365,592
Interest expense	99,608				116,111				105,388				97,972				79,906
Net interest revenue	270,249				279,096				285,432				278,102				285,686
Provision for credit losses	19,000				12,000				5,000				8,000				9,000
Net interest revenue after provision for credit losses	251,249				267,096				280,432				270,102				276,686
Other operating revenue:
Brokerage and trading revenue	43,843				43,840				40,526				31,617				28,101
Transaction card revenue	22,548				22,015				21,915				20,738				20,664
Fiduciary and asset management revenue	45,021				43,621				45,025				43,358				43,665
Deposit service charges and fees	27,331				28,837				28,074				28,243				29,393
Mortgage banking revenue	25,396				30,180				28,131				23,834				21,880
Other revenue	15,283				17,626				12,437				12,762				16,404
Total fees and commissions	179,422				186,119				176,108				160,552				160,107
Other gains (losses), net	(1,649		)		4,544				3,480				2,976				(8,305		)
Gain (loss) on derivatives, net	(4,644		)		3,778				11,150				4,667				11,167
Gain (loss) on fair value option securities, net	(8,328		)		4,597				9,853				9,665				(282		)
Change in fair value of mortgage servicing rights	9,297				(12,593		)		(29,555		)		(20,666		)		(24,233		)
Gain (loss) on available for sale securities, net	4,487				5				1,029				76				(1,999		)
Total other operating revenue	178,585				186,450				172,065				157,270				136,455
Other operating expense:
Personnel	168,422				162,573				160,342				169,228				160,706
Business promotion	8,787				8,859				10,142				7,874				9,207
Charitable contributions to BOKF Foundation	2,000				—				1,000				—				2,846
Professional fees and services	13,408				12,312				13,002				16,139				20,712
Net occupancy and equipment	26,316				27,558				26,880				29,521				27,780
Insurance	5,393				4,220				6,454				4,839				4,248
Data processing and communications	31,884				31,915				29,735				31,449				27,575
Printing, postage and supplies	3,700				3,825				4,107				4,885				5,232
Net losses and operating expenses of repossessed assets	2,403				1,728				580				1,996				2,581
Amortization of intangible assets	5,225				5,064				5,138				5,191				5,331
Mortgage banking costs	14,259				14,975				11,545				9,906				11,518
Other expense	6,998				6,263				8,212				6,129				6,907
Total other operating expense	288,795				279,292				277,137				287,157				284,643
Net income before taxes	141,039				174,254				175,360				140,215				128,498
Federal and state income taxes	30,257				32,396				37,580				29,950				20,121
Net income	110,782				141,858				137,780				110,265				108,377
Net income (loss) attributable to non-controlling interests	430				(373		)		217				(347		)		(79		)
Net income attributable to BOK Financial Corporation shareholders	$	110,352			$	142,231			$	137,563			$	110,612			$	108,456
Average shares outstanding:
Basic	70,295,899				70,596,307				70,887,063				71,387,070				71,808,029
Diluted	70,309,644				70,609,924				70,902,033				71,404,388				71,833,334
Net income per share:
Basic	$	1.56			$	2.00			$	1.93			$	1.54			$	1.50
Diluted	$	1.56			$	2.00			$	1.93			$	1.54			$	1.50

LOANS TREND -- UNAUDITED BOK FINANCIAL CORPORATION (In thousands)
		Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Commercial:
Energy		$	3,973,377			$	4,114,269			$	3,921,353			$	3,705,099			$	3,590,333
Services		3,122,163				3,266,249				3,309,458				3,287,563				3,258,192
Healthcare		3,033,916				3,032,968				2,926,510				2,915,885				2,799,277
Wholesale/retail		1,760,866				1,848,617				1,793,118				1,706,900				1,621,158
Public finance		709,868				744,840				795,659				803,083				804,550
Manufacturing		665,449				698,408				761,357				742,374				730,521
Other commercial and industrial		766,011				719,274				829,453				801,071				832,047
Total commercial		14,031,650				14,424,625				14,336,908				13,961,975				13,636,078
Commercial real estate:
Multifamily		1,265,562				1,324,839				1,300,372				1,210,358				1,288,065
Office		928,379				1,014,275				1,056,306				1,033,158				1,072,920
Industrial		856,117				873,536				828,569				767,757				778,106
Retail		775,521				799,169				825,399				890,685				919,082
Residential construction and land development		150,879				135,361				141,509				149,686				148,584
Other commercial real estate		457,325				478,877				557,878				549,007				558,056
Total commercial real estate		4,433,783				4,626,057				4,710,033				4,600,651				4,764,813
Residential mortgage:
Permanent mortgage		1,057,321				1,066,460				1,088,370				1,098,481				1,122,610
Permanent mortgages guaranteed by U.S. government agencies		197,794				191,764				195,373				193,308				190,866
Home equity		829,057				859,079				887,079				900,831				916,557
Total residential mortgage		2,084,172				2,117,303				2,170,822				2,192,620				2,230,033
Personal		1,201,382				1,117,382				1,037,889				1,003,734				1,025,806
Total		$	21,750,987			$	22,285,367			$	22,255,652			$	21,758,980			$	21,656,730

LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Texas:
Commercial	$	6,174,894			$	6,220,227			$	5,877,265			$	5,754,018			$	5,438,133
Commercial real estate	1,259,117				1,292,116				1,341,609				1,344,810				1,341,783
Residential mortgage	268,282				273,931				272,878				265,927				266,805
Personal	458,893				475,430				400,585				396,794				394,743
Total Texas	8,161,186				8,261,704				7,892,337				7,761,549				7,441,464
Oklahoma:
Commercial	3,454,825				3,690,100				3,762,234				3,551,054				3,491,117
Commercial real estate	631,026				679,786				717,970				665,190				700,756
Residential mortgage	1,375,080				1,370,452				1,403,398				1,417,381				1,440,566
Personal	479,784				383,246				382,764				374,807				375,543
Total Oklahoma	5,940,715				6,123,584				6,266,366				6,008,432				6,007,982
Colorado:
Commercial	2,169,598				2,247,798				2,325,742				2,231,703				2,275,069
Commercial real estate	927,826				975,066				1,023,410				957,348				963,575
Residential mortgage	196,326				224,872				241,780				241,722				251,849
Personal	80,613				78,733				72,537				65,812				72,916
Total Colorado	3,374,363				3,526,469				3,663,469				3,496,585				3,563,409
Arizona:
Commercial	1,307,073				1,276,534				1,330,415				1,335,140				1,320,139
Commercial real estate	728,832				771,425				761,243				791,466				889,903
Residential mortgage	89,396				92,121				91,684				98,973				97,959
Personal	97,143				78,694				76,335				61,875				68,546
Total Arizona	2,222,444				2,218,774				2,259,677				2,287,454				2,376,547
Kansas/Missouri:
Commercial	527,872				566,969				602,836				667,859				659,793
Commercial real estate	322,541				374,795				331,443				327,870				343,228
Residential mortgage	66,771				67,035				71,229				75,560				77,971
Personal	64,298				79,487				84,224				81,831				91,441
Total Kansas/Missouri	981,482				1,088,286				1,089,732				1,153,120				1,172,433
New Mexico:
Commercial	305,320				335,409				350,520				342,915				340,489
Commercial real estate	402,148				374,331				385,058				371,416				383,670
Residential mortgage	80,325				81,383				82,390				85,326				87,346
Personal	9,932				10,887				10,236				11,065				10,662
Total New Mexico	797,725				802,010				828,204				810,722				822,167
Arkansas:
Commercial	92,068				87,588				87,896				79,286				111,338
Commercial real estate	162,293				158,538				149,300				142,551				141,898
Residential mortgage	7,992				7,509				7,463				7,731				7,537
Personal	10,719				10,905				11,208				11,550				11,955
Total Arkansas	273,072				264,540				255,867				241,118				272,728
TOTAL BOK FINANCIAL	$	21,750,987			$	22,285,367			$	22,255,652			$	21,758,980			$	21,656,730

Loans attributed to a geographical region may not always represent the location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands)
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Oklahoma:
Demand	$	3,257,337			$	3,515,312			$	3,279,359			$	3,432,239			$	3,610,593
Interest-bearing:
Transaction	8,574,912				7,447,799				7,020,484				6,542,548				6,445,831
Savings	306,194				308,103				307,785				309,875				288,210
Time	1,125,446				1,198,170				1,253,804				1,217,371				1,118,643
Total interest-bearing	10,006,552				8,954,072				8,582,073				8,069,794				7,852,684
Total Oklahoma	13,263,889				12,469,384				11,861,432				11,502,033				11,463,277
Texas:
Demand	2,766,379				2,870,429				2,974,005				2,966,743				3,291,433
Interest-bearing:
Transaction	2,912,302				2,589,511				2,453,619				2,385,305				2,295,169
Savings	102,456				100,597				103,125				101,849				99,624
Time	495,343				464,264				425,253				419,269				423,880
Total interest-bearing	3,510,101				3,154,372				2,981,997				2,906,423				2,818,673
Total Texas	6,276,480				6,024,801				5,956,002				5,873,166				6,110,106
Colorado:
Demand	1,729,674				1,694,044				1,621,820				1,897,547				1,658,473
Interest-bearing:
Transaction	1,769,037				1,910,874				1,800,271				1,844,632				1,899,203
Savings	53,307				60,107				57,263				58,919				57,289
Time	283,517				273,622				246,198				261,235				274,877
Total interest-bearing	2,105,861				2,244,603				2,103,732				2,164,786				2,231,369
Total Colorado	3,835,535				3,938,647				3,725,552				4,062,333				3,889,842
New Mexico:
Demand	623,722				645,698				630,861				662,362				691,692
Interest-bearing:
Transaction	558,493				539,260				557,881				573,203				571,347
Savings	63,999				62,863				62,636				61,497				58,194
Time	238,140				236,135				232,569				228,212				224,515
Total interest-bearing	860,632				838,258				853,086				862,912				854,056
Total New Mexico	1,484,354				1,483,956				1,483,947				1,525,274				1,545,748
Arizona:
Demand	672,265				703,381				700,480				695,238				707,402
Interest-bearing:
Transaction	684,358				599,655				560,429				621,735				575,567
Savings	10,314				12,487				11,966				12,144				10,545
Time	49,676				44,347				43,099				44,004				43,051
Total interest-bearing	744,348				656,489				615,494				677,883				629,163
Total Arizona	1,416,613				1,359,870				1,315,974				1,373,121				1,336,565
Kansas/Missouri:
Demand	384,533				376,020				431,856				410,799				418,199
Interest-bearing:
Transaction	784,574				284,940				310,774				361,590				327,866
Savings	12,169				11,689				13,125				13,815				13,721
Time	17,877				19,126				19,205				19,977				19,688
Total interest-bearing	814,620				315,755				343,104				395,382				361,275
Total Kansas/Missouri	1,199,153				691,775				774,960				806,181				779,474
Arkansas:
Demand	27,381				39,513				29,176				31,624				36,800
Interest-bearing:
Transaction	108,076				149,506				148,485				147,964				91,593
Savings	1,837				1,747				1,783				1,785				1,632
Time	7,850				7,877				7,810				8,321				8,726
Total interest-bearing	117,763				159,130				158,078				158,070				101,951
Total Arkansas	145,144				198,643				187,254				189,694				138,751
TOTAL BOK FINANCIAL	$	27,621,168			$	26,167,076			$	25,305,121			$	25,331,802			$	25,263,763

NET INTEREST MARGIN TREND -- UNAUDITED BOK FINANCIAL CORPORATION
	Three Months Ended
	Dec. 31, 2019			Sept. 30, 2019			June 30, 2019			Mar. 31, 2019			Dec. 31, 2018
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	1.62%			2.42%			2.57%			2.56%			2.23%
Trading securities	3.19%			3.49%			3.59%			3.88%			4.10%
Investment securities	4.69%			4.46%			4.41%			4.50%			4.26%
Available for sale securities	2.52%			2.60%			2.63%			2.57%			2.51%
Fair value option securities	2.62%			2.79%			3.34%			3.62%			3.56%
Restricted equity securities	5.37%			6.34%			6.30%			6.42%			6.39%
Residential mortgage loans held for sale	3.55%			3.73%			3.65%			4.58%			4.00%
Loans	4.75%			5.12%			5.39%			5.26%			5.09%
Allowance for loan losses
Loans, net of allowance	4.80%			5.17%			5.45%			5.31%			5.14%
Total tax-equivalent yield on earning assets	3.93%			4.25%			4.51%			4.46%			4.33%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	1.00%			1.08%			1.04%			0.94%			0.79%
Savings	0.11%			0.14%			0.12%			0.12%			0.11%
Time	1.94%			1.94%			1.90%			1.80%			1.54%
Total interest-bearing deposits	1.09%			1.17%			1.13%			1.04%			0.87%
Funds purchased and repurchase agreements	1.56%			2.01%			2.08%			2.07%			1.36%
Other borrowings	2.01%			2.42%			2.67%			2.68%			2.51%
Subordinated debt	5.40%			5.48%			5.53%			5.51%			5.38%
Total cost of interest-bearing liabilities	1.40%			1.68%			1.70%			1.66%			1.42%
Tax-equivalent net interest revenue spread	2.53%			2.57%			2.81%			2.80%			2.91%
Effect of noninterest-bearing funding sources and other	0.35%			0.44%			0.49%			0.50%			0.49%
Tax-equivalent net interest margin	2.88%			3.01%			3.30%			3.30%			3.40%

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

CREDIT QUALITY INDICATORS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)
	Three Months Ended
	Dec. 31, 2019				Sept. 30, 2019				June 30, 2019				Mar. 31, 2019				Dec. 31, 2018
Nonperforming assets:
Nonaccruing loans:
Commercial	$	115,416			$	111,706			$	123,395			$	90,358			$	99,841
Commercial real estate	27,626				23,185				21,670				21,508				21,621
Residential mortgage	37,622				37,304				38,477				40,409				41,555
Personal	287				271				237				302				230
Total nonaccruing loans	180,951				172,466				183,779				152,577				163,247
Accruing renegotiated loans guaranteed by U.S. government agencies	92,452				92,718				95,989				91,787				86,428
Real estate and other repossessed assets	20,359				21,026				16,940				17,139				17,487
Total nonperforming assets	$	293,762			$	286,210			$	296,708			$	261,503			$	267,162
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	195,210			$	187,160			$	193,976			$	162,770			$	173,602
Nonaccruing loans by loan class:
Commercial:
Energy	$	91,722			$	88,894			$	71,632			$	35,332			$	47,494
Services	7,483				6,119				10,087				9,555				8,567
Healthcare	4,480				5,978				16,148				18,768				16,538
Manufacturing	10,133				8,741				8,613				9,548				8,919
Wholesale/retail	1,163				1,504				1,390				1,425				1,316
Public finance	—				—				—				—				—
Other commercial and industrial	435				470				15,525				15,730				17,007
Total commercial	115,416				111,706				123,395				90,358				99,841
Commercial real estate:
Retail	18,868				20,132				20,057				20,159				20,279
Residential construction and land development	350				350				350				350				350
Multifamily	6,858				286				275				—				301
Office	—				855				855				855				—
Industrial	909				909				—				—				—
Other commercial real estate	641				653				133				144				691
Total commercial real estate	27,626				23,185				21,670				21,508				21,621
Residential mortgage:
Permanent mortgage	20,441				20,165				21,803				22,937				23,951
Permanent mortgage guaranteed by U.S. government agencies	6,100				6,332				6,743				6,946				7,132
Home equity	11,081				10,807				9,931				10,526				10,472
Total residential mortgage	37,622				37,304				38,477				40,409				41,555
Personal	287				271				237				302				230
Total nonaccruing loans	$	180,951			$	172,466			$	183,779			$	152,577			$	163,247
Performing loans 90 days past due1	$	7,680			$	1,541			$	2,698			$	610			$	1,338
Gross charge-offs	$	14,268			$	11,707			$	13,227			$	11,775			$	14,515
Recoveries	(1,816		)		(1,066		)		(5,503		)		(1,689		)		(2,168		)
Net charge-offs	$	12,452			$	10,641			$	7,724			$	10,086			$	12,347
Provision for credit losses	$	19,000			$	12,000			$	5,000			$	8,000			$	9,000
Allowance for loan losses to period end loans	0.97%				0.92%				0.91%				0.94%				0.96%
Combined allowance for credit losses to period end loans	0.98%				0.92%				0.92%				0.95%				0.97%
Nonperforming assets to period end loans and repossessed assets	1.35%				1.28%				1.33%				1.20%				1.23%
Net charge-offs (annualized) to average loans	0.22%				0.19%				0.14%				0.19%				0.23%
Allowance for loan losses to nonaccruing loans1	120.54%				123.05%				114.40%				141.00%				132.89%
Combined allowance for credit losses to nonaccruing loans1	121.44%				123.87%				115.48%				142.25%				134.03%

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

SEGMENTS -- UNAUDITED BOK FINANCIAL CORPORATION (in thousands, except ratios)
		Three Months Ended												Change
Commercial Banking		Dec. 31, 2019				Sept. 30, 2019				Dec. 31, 2018			1	4Q19 vs 3Q19			4Q19 vs 4Q18
Net interest revenue		$	162,232			$	178,955			$	147,314			(9.3)%			10.1%
Fees and commissions revenue		43,357				46,159				39,667				(6.1)%			9.3%
Other operating expense		68,900				68,697				51,663				0.3%			33.4%
Corporate expense allocations		11,942				12,613				9,112				(5.3)%			31.1%
Net income		81,732				100,675				83,783				(18.8)%			(2.4)%
Average assets		24,345,447				23,973,067				19,341,921				1.6%			25.9%
Average loans		19,100,101				19,226,347				15,628,731				(0.7)%			22.2%
Average deposits		11,419,558				10,833,057				8,393,016				5.4%			36.1%
Consumer Banking
Net interest revenue		$	43,176			$	48,462			$	41,364			(10.9)%			4.4%
Fees and commissions revenue		44,884				51,460				42,840				(12.8)%			4.8%
Other operating expense		59,702				59,699				56,346				—	%		6.0%
Corporate expense allocations		11,798				11,776				11,114				0.2%			6.2%
Net income		8,287				16,640				2,531				(50.2)%			227.4%
Average assets		9,772,710				9,827,130				8,071,978				(0.6)%			21.1%
Average loans		1,730,467				1,773,831				1,745,642				(2.4)%			(0.9)%
Average deposits		6,974,453				6,983,018				6,542,188				(0.1)%			6.6%
Wealth Management
Net interest revenue		$	21,826			$	23,066			$	28,949			(5.4)%			(24.6)%
Fees and commissions revenue		92,729				89,422				72,452				3.7%			28.0%
Other operating expense		74,688				71,620				66,658				4.3%			12.0%
Corporate expense allocations		9,296				9,416				11,256				(1.3)%			(17.4)%
Net income		22,863				23,205				17,447				(1.5)%			31.0%
Average assets		11,225,213				10,391,225				8,694,289				8.0%			29.1%
Average loans		1,667,278				1,671,102				1,448,805				(0.2)%			15.1%
Average deposits		7,301,391				6,590,332				5,483,455				10.8%			33.2%
Fiduciary assets		52,352,135				49,259,697				44,841,339				6.3%			16.7%
Assets under management or administration		82,740,961				80,796,949				76,279,777				2.4%			8.5%

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

Contact:

Cody McAlester
Vice President, Investor Relations
918-595-3030