BOK Financial Corporation Reports Quarterly Earnings of $146 million or $2.10 Per Share in the First Quarter

TULSA, Okla., April 21, 2021 (GLOBE NEWSWIRE) -- BOK Financial (NASDAQ: BOKF) today reported net earnings applicable to common shareholders for the first quarter of 2021 of $146.1 million, or $2.10 per diluted common share.

CEO Commentary

Steven G. Bradshaw, president and chief executive officer stated, "Not since the energy downturn in 2016 have we had an opportunity to demonstrate how valuable our organization's differentiated credit culture is to shareholder outcomes. Exceptional credit outcomes coupled with improving economic metrics led us to release $25 million in reserves in the quarter. This is a testament not only to how well we've managed the ongoing crisis, but more importantly, our ability to remain disciplined with credit decisions in more favorable parts of the cycle."

Bradshaw continued, "While loan growth remains challenged industry-wide during a time of unprecedented liquidity and heightened uncertainty, BOK Financial Corporation remains focused on the long-term. We have a longstanding track record of loan growth outpacing U.S. GDP growth, and with the economic recovery underway, we see a clear path to growing loans this year. With substantial capital levels, a strong competitive position and a favorable footprint, we remain confident in our ability to serve both our clients and our shareholders well in 2021.

As always, we are closely monitoring our expense levels, striving for balance between expense reductions and containment while keeping our level of long term investments in people and technology a top priority. We believe the company is extremely well positioned to attract and expand new relationships as the economy expands and further opens in 2021." 

First Quarter 2021 Financial Highlights

• Net income was $146.1 million or $2.10 per diluted share for the first quarter of 2021 and $154.2 million or $2.21 per diluted share for the fourth quarter of 2020.
• Net interest revenue totaled $280.4 million, a decrease of $16.8 million. Net interest margin was 2.62 percent compared to 2.72 percent in the fourth quarter of 2020. A reduction in average outstanding loan balances and the timing of certain loan fees, combined with reinvestment of cash flows from our available for sale securities portfolio at current rates, led to lower net interest revenue and compressed net interest margin in the first quarter.
• Fees and commissions revenue totaled $162.2 million, a decrease of $18.9 million. Brokerage and trading revenue decreased $18.7 million, largely due to a decrease in trading volume and margin compression. While still strong, mortgage banking revenue decreased $2.2 million, primarily the result of increasing mortgage interest rates coupled with margin compression.
• Operating expense decreased $18.0 million to $282.6 million. Personnel expense decreased $3.2 million, primarily due to lower incentive compensation, partially offset by a seasonal increase in employee benefits expense. Non-personnel expense decreased $14.8 million primarily due to a gain on sale of repossessed oil and gas assets. Decreases in professional fees, business promotion, occupancy and equipment expense and other expenses were partially offset by an increase in data processing and communications expense.
• Period-end loans decreased $474 million to $22.5 billion at March 31, 2021, primarily due to paydowns of commercial loans and commercial real estate loans. Period-end Paycheck Protection Program ("PPP") loans increased $166 million to $1.8 billion. Average loans were $22.8 billion, a $691 million decrease compared to the fourth quarter of 2020.
• Forecasts for improving macroeconomic factors as the pace of COVID-19 vaccinations accelerates and energy prices stabilize resulted in a $25.0 million negative provision for expected credit losses in the first quarter of 2021. A $6.5 million negative provision for expected credit losses was recorded in the prior quarter. The allowance for loan losses totaled $352 million or 1.70 percent of outstanding loans, excluding PPP loans, at March 31, 2021. The allowance for loan losses was $389 million or 1.82 percent of outstanding loans, excluding PPP loans, at December 31, 2020.
• Average deposits increased $1.0 billion to $36.5 billion and period-end deposits increased $1.7 billion to $37.9 billion, largely due to growth in commercial balances. Clients across all of our business segments continued to maintain higher deposit balances during this period of economic uncertainty, supplemented by inflows from government stimulus payments.
• The company's common equity Tier 1 capital ratio was 12.14 percent at March 31, 2021. In addition, the company's Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.51 percent at March 31, 2021. At December 31, 2020, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.82 percent, and leverage ratio was 8.28 percent.
• The company repurchased 260,000 shares of common stock at an average price of $77.20 a share in the first quarter of 2021.
• Commercial Banking contributed $69.7 million to net income, a decrease of $5.3 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $11.2 million. Net interest revenue decreased $12.0 million, primarily due to a reduction in outstanding loan balances, timing of certain loan fees, and lower yields on deposits sold to our Funds Management unit. Average Commercial Banking loans decreased $578 million due to purposeful deleveraging by our customers. Average Commercial deposits grew 5 percent to $16.1 billion in the first quarter.
• Consumer Banking contributed $6.8 million to net income in the first quarter of 2021, a decrease of $7.9 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $12.7 million. Net interest revenue decreased $9.7 million, mainly due to lower yields on deposits sold to our Funds Management unit. Fees and commissions revenue decreased $3.0 million, largely due to reduced mortgage gain on sale margins. While mortgage production revenue decreased, mortgage production volumes remained strong in the first quarter.
• Wealth Management contributed $19.4 million to net income in the first quarter of 2021, a decrease of $9.1 million compared to the fourth quarter of 2020. Combined net interest revenue and fee revenue decreased $17.4 million. Net interest revenue was relatively consistent with the previous quarter. However, brokerage and trading revenue decreased $15.0 million due to narrowing margins and a reduction in trading volumes. While our agency residential mortgage trading activity has slowed from the record levels in 2020, combined net interest revenue and fee revenue has grown compared to the first quarter of 2020. Operating expense decreased $5.4 million, primarily due to incentive compensation costs related to decreased trading activity. Average Wealth Management loans grew by $78.3 million compared to the prior quarter while average deposits increased $116 million. Assets under management or administration totaled $92.0 billion compared to $91.6 billion in the prior quarter.

Net Interest Revenue

Net interest revenue was $280.4 million for the first quarter of 2021, a $16.8 million decrease compared to the fourth quarter of 2020. The decrease in net interest revenue was primarily driven by lower average outstanding loan balances. Net interest margin was 2.62 percent compared to 2.72 percent in the fourth quarter of 2020. Reinvestment of cash flows from our available for sale securities portfolio to current interest rates and timing of PPP and other loan fees also contributed to a decrease in net interest revenue and net interest margin in the first quarter.

Average earning assets decreased $178 million compared to the fourth quarter of 2020. Average loan balances decreased $691 million, primarily from commercial and commercial real estate loan paydowns. Available for sale securities increased $484 million. Average interest-bearing deposits grew by $823 million, primarily due to higher interest-bearing transaction deposits in the wake of the most recent government stimulus program. Other borrowings decreased $1.8 billion while funds purchased and repurchase agreements increased $677 million.

The yield on average earning assets was 2.78 percent, a 14 basis point decrease from the prior quarter. The yield on the available for sale securities portfolio decreased 14 basis points to 1.84 percent. Cash flows received from these securities are currently being reinvested at 95 - 105 basis points. The loan portfolio yield decreased 13 basis points to 3.55 percent, largely due to the timing of certain loan fees, including Paycheck Protection Program loans.

Funding costs were 0.24 percent, down 4 basis points. The cost of other borrowed funds was down 8 basis points to 0.30 percent. The cost of interest-bearing deposits decreased 2 basis points to 0.17 percent. The benefit to net interest margin from assets funded by non-interest liabilities was 8 basis points for the first quarter of 2021, consistent with the prior quarter.

Fees and Commissions Revenue

Fees and commissions revenue totaled $162.2 million for the first quarter of 2021, a decrease of $18.9 million compared to the fourth quarter of 2020. Brokerage and trading revenue decreased $18.7 million to $20.8 million, including a $15.4 million reduction in trading revenue. Agency residential mortgage trading volumes have slowed from record levels in 2020 and margins compressed due to market conditions during the first quarter of 2021. In addition, customer hedging revenue decreased $2.1 million, primarily due to decreased energy customer hedging activities. Investment banking revenue decreased $2.1 million, mainly due to timing of loan syndication activity.

Mortgage banking revenue decreased $2.2 million compared to the prior quarter, down to a level comparable to the first quarter of 2020. While mortgage production volumes remained consistent with the prior quarter, mortgage interest rates began to increase and margins compressed. The gain on sale margin decreased 28 basis points to 2.98 percent.

Other revenue increased $2.1 million, primarily due to production revenue from repossessed oil and gas properties.

Operating Expense

Total operating expense was $282.6 million for the first quarter of 2021, a decrease of $18.0 million compared to the fourth quarter of 2020.

Personnel expense decreased $3.2 million, led by a $10.3 million decrease in incentive compensation expense, partially offset by a $6.4 million seasonal increase in payroll taxes and retirement plan costs. Cash based incentive compensation expense decreased $8.2 million, primarily in relation to decreased trading revenue. Deferred compensation expense, which is largely offset by a decrease in the value of related investments included in Other gains (losses), net, decreased $3.4 million.

Non-personnel expense decreased $14.8 million compared to the fourth quarter of 2020. Net losses and expenses on repossessed assets decreased $7.8 million, largely due to $14.1 million gain on the sale of an equity interest received as part of the workout of a defaulted energy loan. Smaller reductions in expenses in professional fees and services, business promotion, and occupancy and equipment also supplemented the overall decrease in non-personnel expense. These were partially offset by a $2.4 million increase in data processing and communications expense as we continue to invest in technology.

We made a charitable contribution of $4.0 million in the first quarter and a contribution of $6.0 million in the prior quarter to the BOKF Foundation as we continue to focus on the communities we serve and the extreme needs created by the pandemic.

Loans, Deposits and Capital

Loans

Outstanding loans were $22.5 billion at March 31, 2021, a $474 million decrease compared to December 31, 2020, primarily due to payoffs of commercial and commercial real estate loans.

Outstanding commercial loan balances decreased $420 million or 3 percent compared to December 31, 2020. Borrowers continue to reduce leverage in this challenging economic environment. Although the primary source of repayment of our commercial loan portfolio is the on-going cash flow from operations of the customer's business, loans are generally governed by a borrowing base and secured by the customer’s assets.

Energy loan balances decreased $267 million to $3.2 billion or 14 percent of total loans. While commodity prices have continued to improve and stabilize, sourcing new loans sufficient to offset paydowns remains a challenge. The majority of this portfolio is first lien, senior secured, reserve-based lending to oil and gas producers, which we believe is the lowest risk form of energy lending. Approximately 66 percent of committed production loans are secured by properties primarily producing oil. The remaining 34 percent is secured by properties primarily producing natural gas. Unfunded energy loan commitments were $2.4 billion at March 31, 2021, consistent with December 31, 2020.

Healthcare sector loan balances were largely unchanged compared to the prior quarter, totaling $3.3 billion or 15 percent of total loans. Our healthcare sector loans primarily consist of $2.6 billion of senior housing and care facilities, including independent living, assisted living and skilled nursing. Generally we loan to borrowers with a portfolio of multiple facilities that serves to help diversify risks specific to a single facility. The most recent stimulus bill, like the CARES Act, has multiple revenue enhancement measures for both hospitals and skilled nursing facilities as they manage through the risks of the virus.

General business loans decreased $51 million to $2.7 billion or 12 percent of total loans. General business loans include $1.5 billion of wholesale/retail loans and $1.2 billion of loans from other commercial industries.

Services loan balances decreased $87 million to $3.4 billion or 15 percent of total loans. Services loans consist of a large number of loans to a variety of businesses, including Native American tribal and state and local municipal government entities, Native American tribal casino operations, foundations and not-for-profit organizations, educational services and specialty trade contractors.

Commercial real estate loan balances decreased $195 million compared to December 31, 2020 and represent 20 percent of total loans at March 31, 2021. Multifamily residential loans, our largest exposure in commercial real estate, decreased $100 million to $1.2 billion at March 31, 2021. Loans secured by other commercial real estate properties decreased $74 million to $485 million. Loans secured by industrial facilities decreased $21 million to $789 million. Loans secured by retail facilities and office buildings were largely unchanged compared to December 31, 2020.

PPP loan balances increased $166 million to $1.8 billion or 8 percent of total loans. We originated $544 million of new PPP loans during the first quarter of 2021, maintaining our strategy of focusing on our existing client base to timely support our existing client needs. Growth from new originations was partially offset by paydowns from the first round of loans.

Loans to individuals decreased $25 million and represent 16 percent of total loans at March 31, 2021. Residential mortgage loans decreased $66 million. Personal loans were up $29 million and residential mortgage loans guaranteed by U.S. government agencies increased $11 million. The Company may repurchase loans previously sold into GNMA mortgage pools when certain defined delinquency criteria are met. Because of this repurchase right, we have regained effective control over these loans and must include them on the Consolidated Balance Sheet.

Deposits

Period-end deposits totaled $37.9 billion at March 31, 2021, a $1.7 billion increase over December 31, 2020. Continued deposit growth was due primarily to customers retaining higher balances in the current economic environment supplemented by the most recent government stimulus program. Demand deposit account balances grew by $837 million and interest-bearing transaction account balances grew by $732 million. Period-end commercial deposits grew by $1.0 billion, consumer deposits increased $474 million and wealth management deposits were up $566 million. Average deposits were $36.5 billion at March 31, 2021, a $1.0 billion increase compared to December 31, 2020. Interest-bearing transaction deposits increased $715 million.

Capital

The company's common equity Tier 1 capital ratio was 12.14 percent at March 31, 2021. In addition, the company's Tier 1 capital ratio was 12.21 percent, total capital ratio was 13.98 percent, and leverage ratio was 8.51 percent at March 31, 2021. We have elected to delay the regulatory capital impact of the transition of the allowance for credit losses from the incurred loss methodology to CECL for two years, followed by a three-year transition period, which added 23         basis points to the company's common equity tier 1 capital ratio at March 31. At December 31, 2020, the company's common equity Tier 1 capital ratio was 11.95 percent, Tier 1 capital ratio was 11.95 percent, total capital ratio was 13.82 percent, and leverage ratio was 8.28 percent.

The company's tangible common equity ratio, a non-GAAP measure, was 8.82 percent at March 31, 2021 and 9.02 percent at December 31, 2020. 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 260,000 shares of common stock at an average price of $77.20 a share in the first quarter of 2021. We view share buybacks opportunistically, but within the context of maintaining our strong capital position.

Credit Quality

Expected credit losses on assets carried at amortized cost are recognized over their expected lives based on models that measure the probability of default and loss given default over a 12-month reasonable and supportable forecast period. Our models incorporate base case, downside and upside macroeconomic variables such as real gross domestic product ("GDP") growth, civilian unemployment rate and West Texas Intermediate ("WTI") oil prices on a probability weighted basis.

We recorded a $25.0 million negative provision for credit losses in the first quarter of 2021. Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to an improved economic outlook related to the anticipated impact of the on-going COVID-19 pandemic, resulted in a $31.1 million decrease in the allowance for credit losses from lending activities. Changes in the loan portfolio characteristics, including specific impairment and losses, risk grading and loan balances resulted in a $5.2 million increase in the allowance for credit losses from lending activities.

Our base case reasonable and supportable forecast assumes that the COVID-19 pandemic continues to improve as virus immunity becomes increasingly more widespread and vaccines prove to be effective against new virus strains. This scenario assumes vaccine distribution continues to accelerate through the first half of 2021, with a large share of the U.S. population vaccinated by the end of the third quarter of 2021. Continued easing of restrictions and the release of pent-up consumer demand results in GDP growth above historical averages, with GDP recovering to pre-COVID levels in the second quarter of 2021. We expect a 5.6 percent increase in GDP over the next twelve months. Our forecasted civilian unemployment rate is 6.0 percent for the second quarter of 2021, improving to 5.0 percent by the first quarter of 2022. WTI oil prices are projected to generally follow the NYMEX forward curve that existed at the end of March 2021, averaging $57.87 per barrel over the next twelve months.

The probability weighting of our base case reasonable and supportable forecast was unchanged compared to the fourth quarter of 2020 as there continues to be a high level of uncertainty in the current economic outlook. Our downside case assumes additional waves and hotspots emerge stemming from new virus strains throughout the second and third quarter of 2021 and more constrained distribution of vaccines not reaching widespread distribution until the end of 2021. This results in no GDP growth over the next twelve months and unemployment rates remaining elevated through the first quarter of 2022.

The allowance for loan losses totaled $352 million or 1.56 percent of outstanding loans and 170 percent of nonaccruing loans at March 31, 2021, excluding residential mortgage loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $385 million or 1.71 percent of outstanding loans and 186 percent of nonaccruing loans at March 31, 2021. The combined allowance for credit losses attributed to energy was 3.29 percent of outstanding energy loans at March 31 compared to 3.61 at December 31. Excluding PPP loans, the allowance for loan losses was 1.70 percent of outstanding loans and the combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.86 percent.

At December 31, 2020, the allowance for loan losses was $389 million or 1.69 percent of outstanding loans and 171 percent of nonaccruing loans, excluding loans guaranteed by U.S. government agencies. The combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments was $426 million or 1.85 percent of outstanding loans and 188 percent of nonaccruing loans.

Nonperforming assets totaled $442 million or 1.95 percent of outstanding loans and repossessed assets at March 31, 2021, down from $477 million or 2.07 percent at December 31, 2020. Nonperforming assets that are not guaranteed by U.S. government agencies totaled $278 million or 1.37 percent of outstanding loans and repossessed assets at March 31, 2021, compared to $317 million or 1.51 percent at December 31, 2020. The decrease in nonperforming assets was primarily related to a decrease in nonaccruing energy loans and sales of energy-related repossessed assets during the first quarter of 2021.

Nonaccruing loans were $216 million or 1.04 percent of outstanding loans, excluding PPP loans, at March 31, 2021. Nonaccruing commercial loans totaled $147 million or 1.16 percent of outstanding commercial loans. Nonaccruing commercial real estate loans totaled $27 million or 0.60 percent of outstanding commercial real estate loans. Nonaccruing loans to individuals totaled $42 million or 1.18 percent of outstanding loans to individuals.

Nonaccruing loans decreased $19 million compared to December 31, 2020, primarily due to a decrease in nonaccruing energy loans. New nonaccruing loans identified in the first quarter totaled $25 million, offset by $26 million in payments received and $17 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 $422 million at March 31, down from $478 million at December 31. Lower energy and services potential problem loans, were partially offset by an increase in potential problem healthcare loans.

Net charge-offs were $14.5 million or 0.28 percent of average loans on an annualized basis for the first quarter of 2021, excluding PPP loans. Net charge-offs were 0.31 percent of average loans over the last four quarters. Net charge-offs were $16.7 million or 0.31 percent of average loans on an annualized basis for the fourth quarter of 2020, excluding PPP loans. Gross charge-offs were $16.9 million for the first quarter compared to $18.3 million for the previous quarter. Recoveries totaled $2.4 million for the first quarter of 2021 and $1.6 million for the fourth quarter of 2020.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled $13.4 billion at March 31, 2021, a $359 million increase compared to December 31, 2020. At March 31, 2021, the available for sale securities portfolio consisted primarily of $9.7 billion of residential mortgage-backed securities fully backed by U.S. government agencies and $3.4 billion of commercial mortgage-backed securities fully backed by U.S. government agencies. At March 31, 2021, the available for sale securities portfolio had a net unrealized gain of $290 million compared to $441 million at December 31, 2020.

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 $42 million to $72 million at March 31, 2021.

The net economic benefit of the changes in the fair value of mortgage servicing rights and related economic hedges was $4.7 million during the first quarter of 2021, including a $33.9 million increase in the fair value of mortgage servicing rights, $29.6 million decrease in the fair value of securities and derivative contracts held as an economic hedge, and $393 thousand of related net interest revenue.

Conference Call and Webcast

The company will hold a conference call at 9 a.m. Central time on April 21, 2021 to discuss the financial results with investors. The live audio webcast and presentation slides will be available on the company’s website at www.bokf.com. The conference call can also be accessed by dialing 1-201-689-8471. A conference call and webcast replay will also be available shortly after conclusion of the live call at www.bokf.com or by dialing 1-412-317-6671 and referencing conference ID # 13718312.

About BOK Financial Corporation

BOK Financial Corporation is a $47 billion regional financial services company headquartered in Tulsa, Oklahoma with $92 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, Wisconsin and Connecticut. Through its subsidiaries, BOK Financial Corporation provides commercial and consumer banking, brokerage trading, investment, trust and insurance services, mortgage origination and servicing, and an electronic funds transfer network. For more information, visit www.bokf.com.

The company will continue to evaluate critical assumptions and estimates, such as the appropriateness of the allowance for credit losses and asset impairment as of March 31, 2021 through the date its financial statements are filed with the Securities and Exchange Commission and will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, the economy generally and the expected or potential impact of the novel coronavirus (COVID-19) pandemic, and the related responses of the government, consumers, and others, on our business, financial condition and results of operations. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “plans,” “projects,” “will,” “intends,” variations of such words and similar expressions are intended to identify such forward-looking statements. Management judgments relating to and discussion of the provision and allowance for credit losses, allowance for uncertain tax positions, accruals for loss contingencies and valuation of mortgage servicing rights involve judgments as to expected events and are inherently forward-looking statements. Assessments that acquisitions and growth endeavors will be profitable are necessary statements of belief as to the outcome of future events based in part on information provided by others which BOK Financial has not independently verified. These various forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. Internal and external factors that might cause such a difference include, but are not limited to changes in government, consumer or business responses to, and ability to treat or prevent further outbreak of the COVID-19 pandemic, changes in commodity prices, interest rates and interest rate relationships, inflation, demand for products and services, the degree of competition by traditional and nontraditional competitors, changes in banking regulations, tax laws, prices, levies and assessments, the impact of technological advances, and trends in customer behavior as well as their ability to repay loans. BOK 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, 2021					Dec. 31, 2020
ASSETS
Cash and due from banks	$	723,983				$	798,757
Interest-bearing cash and cash equivalents	695,213					381,816
Trading securities	5,085,949					4,707,975
Investment securities, net of allowance	226,121					244,843
Available for sale securities	13,410,057					13,050,665
Fair value option securities	72,498					114,982
Restricted equity securities	139,614					171,391
Residential mortgage loans held for sale	284,447					252,316
Loans:
Commercial	12,657,784					13,077,535
Commercial real estate	4,503,347					4,698,538
Paycheck protection program	1,848,550					1,682,310
Loans to individuals	3,524,166					3,549,137
Total loans	22,533,847					23,007,520
Allowance for loan losses	(352,402		)			(388,640		)
Loans, net of allowance	22,181,445					22,618,880
Premises and equipment, net	555,455					551,308
Receivables	250,852					245,880
Goodwill	1,048,091					1,048,091
Intangible assets, net	110,585					113,436
Mortgage servicing rights	132,915					101,172
Real estate and other repossessed assets, net	70,911					90,526
Derivative contracts, net	1,289,156					810,688
Cash surrender value of bank-owned life insurance	401,320					398,758
Receivable on unsettled securities sales	67,759					62,386
Other assets	696,142					907,218
TOTAL ASSETS	$	47,442,513				$	46,671,088
LIABILITIES AND EQUITY
Deposits:
Demand	$	13,103,170				$	12,266,338
Interest-bearing transaction	21,890,874					21,158,422
Savings	854,226					751,992
Time	2,004,356					1,967,128
Total deposits	37,852,626					36,143,880
Funds purchased and repurchase agreements	795,161					1,662,386
Other borrowings	1,708,517					1,882,970
Subordinated debentures	276,024					276,005
Accrued interest, taxes and expense	290,328					323,667
Due on unsettled securities purchases	106,835					257,627
Derivative contracts, net	719,556					405,779
Other liabilities	431,122					427,213
TOTAL LIABILITIES	42,180,169					41,379,527
Shareholders' equity:
Capital, surplus and retained earnings	5,018,053					4,930,398
Accumulated other comprehensive gain	221,409					335,868
TOTAL SHAREHOLDERS' EQUITY	5,239,462					5,266,266
Non-controlling interests	22,882					25,295
TOTAL EQUITY	5,262,344					5,291,561
TOTAL LIABILITIES AND EQUITY	$	47,442,513				$	46,671,088

AVERAGE BALANCE SHEETS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)

	Three Months Ended
	Mar. 31, 2021					Dec. 31, 2020					Sept. 30, 2020					June 30, 2020					Mar. 31, 2020
ASSETS
Interest-bearing cash and cash equivalents	$	711,047				$	643,926				$	553,070				$	619,737				$	721,659
Trading securities	6,963,617					6,888,189					1,834,160					1,871,647					1,690,104
Investment securities, net of allowance	237,313					251,863					258,965					268,947					282,265
Available for sale securities	13,433,767					12,949,702					12,580,850					12,480,065					11,664,521
Fair value option securities	104,662					122,329					387,784					786,757					1,793,480
Restricted equity securities	189,921					280,428					144,415					273,922					429,133
Residential mortgage loans held for sale	207,013					229,631					213,125					288,588					129,708
Loans:
Commercial	12,908,461					13,113,449					13,772,217					14,502,652					14,452,851
Commercial real estate	4,547,945					4,788,393					4,754,269					4,543,511					4,346,886
Paycheck protection program	1,741,534					1,928,665					2,092,933					1,699,369					—
Loans to individuals	3,559,067					3,617,011					3,491,044					3,353,960					3,143,286
Total loans	22,757,007					23,447,518					24,110,463					24,099,492					21,943,023
Allowance for loan losses	(382,734		)			(414,225		)			(441,831		)			(367,583		)			(250,338		)
Loans, net of allowance	22,374,273					23,033,293					23,668,632					23,731,909					21,692,685
Total earning assets	44,221,613					44,399,361					39,641,001					40,321,572					38,403,555
Cash and due from banks	760,691					742,432					723,826					678,878					669,369
Derivative contracts, net	873,712					553,779					581,839					642,969					376,621
Cash surrender value of bank-owned life insurance	399,830					397,354					394,680					391,951					390,009
Receivable on unsettled securities sales	735,482					1,094,198					4,563,301					4,626,307					3,046,111
Other assets	3,319,305					3,200,040					3,027,108					3,095,354					2,834,953
TOTAL ASSETS	$	50,310,633				$	50,387,164				$	48,931,755				$	49,757,031				$	45,720,618
LIABILITIES AND EQUITY
Deposits:
Demand	$	12,312,629				$	12,136,071				$	11,929,694				$	11,489,322				$	9,232,859
Interest-bearing transaction	21,433,406					20,718,390					19,752,106					18,040,170					16,159,654
Savings	789,656					737,360					707,121					656,669					563,821
Time	1,986,425					1,930,808					2,251,012					2,464,793					2,239,234
Total deposits	36,522,116					35,522,629					34,639,933					32,650,954					28,195,568
Funds purchased and repurchase agreements	2,830,378					2,153,254					2,782,150					5,816,484					3,815,941
Other borrowings	3,392,346					5,193,656					3,382,688					3,527,303					6,542,325
Subordinated debentures	276,015					275,998					275,980					275,949					275,932
Derivative contracts, net	428,488					399,476					458,390					836,667					379,342
Due on unsettled securities purchases	915,410					957,642					1,516,880					887,973					960,780
Other liabilities	671,715					656,147					712,674					690,087					642,764
TOTAL LIABILITIES	45,036,468					45,158,802					43,768,695					44,685,417					40,812,652
Total equity	5,274,165					5,228,362					5,163,060					5,071,614					4,907,966
TOTAL LIABILITIES AND EQUITY	$	50,310,633				$	50,387,164				$	48,931,755				$	49,757,031				$	45,720,618

STATEMENTS OF EARNINGS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except per share data)

	Three Months Ended
	March 31,
	2021					2020
Interest revenue	$	298,239				$	348,937
Interest expense	17,819					87,577
Net interest revenue	280,420					261,360
Provision for credit losses	(25,000		)			93,771
Net interest revenue after provision for credit losses	305,420					167,589
Other operating revenue:
Brokerage and trading revenue	20,782					50,779
Transaction card revenue	22,430					21,881
Fiduciary and asset management revenue	41,322					44,458
Deposit service charges and fees	24,209					26,130
Mortgage banking revenue	37,113					37,167
Other revenue	16,296					12,309
Total fees and commissions	162,152					192,724
Other gains (losses), net	(3,036		)			(10,741		)
Gain (loss) on derivatives, net	(27,650		)			18,420
Gain (loss) on fair value option securities, net	(1,910		)			68,393
Change in fair value of mortgage servicing rights	33,874					(88,480		)
Gain on available for sale securities, net	467					3
Total other operating revenue	163,897					180,319
Other operating expense:
Personnel	173,010					156,181
Business promotion	2,154					6,215
Charitable contributions to BOKF Foundation	4,000					—
Professional fees and services	11,980					12,948
Net occupancy and equipment	26,662					26,061
Insurance	4,620					4,980
Data processing and communications	37,467					32,743
Printing, postage and supplies	3,440					4,272
Net losses (gains) and operating expenses of repossessed assets	(6,588		)			1,531
Amortization of intangible assets	4,807					5,094
Mortgage banking costs	13,943					10,545
Other expense	7,132					8,054
Total other operating expense	282,627					268,624
Net income before taxes	186,690					79,284
Federal and state income taxes	42,382					17,300
Net income	144,308					61,984
Net loss attributable to non-controlling interests	(1,752		)			(95		)
Net income attributable to BOK Financial Corporation shareholders	$	146,060				$	62,079
Average shares outstanding:
Basic	69,137,375					70,123,685
Diluted	69,141,710					70,130,166
Net income per share:
Basic	$	2.10				$	0.88
Diluted	$	2.10				$	0.88

FINANCIAL HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratio and share data)

	Three Months Ended
	Mar. 31, 2021					Dec. 31, 2020					Sept. 30, 2020					June 30, 2020					Mar. 31, 2020
Capital:
Period-end shareholders' equity	$	5,239,462				$	5,266,266				$	5,218,787				$	5,096,995				$	5,026,248
Risk weighted assets	$	32,623,108				$	32,492,277				$	31,529,826				$	32,180,602				$	32,973,242
Risk-based capital ratios:
Common equity tier 1	12.14%					11.95%					12.07%					11.44%					10.98%
Tier 1	12.21%					11.95%					12.07%					11.44%					10.98%
Total capital	13.98%					13.82%					14.05%					13.43%					12.65%
Leverage ratio	8.51%					8.28%					8.39%					7.74%					8.15%
Tangible common equity ratio1	8.82%					9.02%					9.02%					8.79%					8.39%
Common stock:
Book value per share	$	75.33				$	75.62				$	74.23				$	72.50				$	71.49
Tangible book value per share	$	58.67				$	58.94				$	57.64				$	55.83				$	54.85
Market value per share:
High	$	98.95				$	73.07				$	62.86				$	67.62				$	87.40
Low	$	67.57				$	50.09				$	48.41				$	37.80				$	34.57
Cash dividends paid	$	36,038				$	36,219				$	35,799				$	35,769				$	35,949
Dividend payout ratio	24.67 %					23.48 %					23.24 %					55.29 %					57.91 %
Shares outstanding, net	69,557,873					69,637,600					70,305,833					70,306,690					70,308,532
Stock buy-back program:
Shares repurchased	260,000					665,100					—					—					442,000
Amount	$	20,071				$	42,450				$	—				$	—				$	33,380
Average price per share	$	77.20				$	63.82				$	—				$	—				$	75.52
Performance ratios (quarter annualized):
Return on average assets	1.18%					1.22%					1.25%					0.52%					0.55%
Return on average equity	11.28%					11.75%					11.89%					5.14%					5.10%
Net interest margin	2.62%					2.72%					2.81%					2.83%					2.80%
Efficiency ratio	63.32%					62.36%					60.41%					59.57%					58.62%
Reconciliation of non-GAAP measures:
1 Tangible common equity ratio:
Total shareholders' equity	$	5,239,462				$	5,266,266				$	5,218,787				$	5,096,995				$	5,026,248
Less: Goodwill and intangible assets, net	1,158,676					1,161,527					1,166,615					1,171,686					1,169,898
Tangible common equity	$	4,080,786				$	4,104,739				$	4,052,172				$	3,925,309				$	3,856,350
Total assets	$	47,442,513				$	46,671,088				$	46,067,224				$	45,819,874				$	47,119,162
Less: Goodwill and intangible assets, net	1,158,676					1,161,527					1,166,615					1,171,686					1,169,898
Tangible assets	$	46,283,837				$	45,509,561				$	44,900,609				$	44,648,188				$	45,949,264
Tangible common equity ratio	8.82%					9.02%					9.02%					8.79%					8.39%
Pre-provision net revenue:
Net income before taxes	$	186,690				$	199,847				$	204,644				$	80,089				$	79,284
Provision for expected credit losses	(25,000		)			(6,500		)			—					135,321					93,771
Net income (loss) attributable to non-controlling interests	(1,752		)			485					58					(407		)			(95		)
Pre-provision net revenue	$	163,442				$	192,862				$	204,586				$	215,817				$	173,150
Other data:
Tax equivalent interest	$	2,301				$	2,414				$	2,457				$	2,630				$	2,715
Net unrealized gain on available for sale securities	$	290,217				$	440,814				$	480,563				$	487,334				$	435,989
Mortgage banking:
Mortgage production revenue	$	25,287				$	26,662				$	38,431				$	39,185				$	21,570
Mortgage loans funded for sale	$	843,053				$	998,435				$	1,032,472				$	1,184,249				$	548,956
Add: current period-end outstanding commitments	387,465					380,637					560,493					546,304					657,570
Less: prior period end outstanding commitments	380,637					560,493					546,304					657,570					158,460
Total mortgage production volume	$	849,881				$	818,579				$	1,046,661				$	1,072,983				$	1,048,066
Mortgage loan refinances to mortgage loans funded for sale	65%					58%					54%					71%					57%
Gain on sale margin	2.98%					3.26%					3.67%					3.65%					2.06%
Mortgage servicing revenue	$	11,826				$	12,636				$	13,528				$	14,751				$	15,597
Average outstanding principal balance of mortgage loans serviced for others	15,723,231					16,518,208					17,434,215					19,319,872					20,416,546
Average mortgage servicing revenue rates	0.31%					0.30%					0.31%					0.31%					0.31%
Gain (loss) on mortgage servicing rights, net of economic hedge:
Gain (loss) on mortgage hedge derivative contracts, net	$	(27,705	)			$	(385	)			$	2,295				$	21,815				$	18,371
Gain (loss) on fair value option securities, net	(1,910		)			68					(754		)			(14,459		)			68,393
Gain (loss) on economic hedge of mortgage servicing rights	(29,615		)			(317		)			1,541					7,356					86,764
Gain (loss) on changes in fair value of mortgage servicing rights	33,874					6,276					3,441					(761		)			(88,480		)
Gain (loss) on changes in fair value of mortgage servicing rights, net of economic hedges, included in other operating revenue	4,259					5,959					4,982					6,595					(1,716		)
Net interest revenue on fair value option securities2	393					550					1,565					2,702					4,268
Total economic benefit of changes in the fair value of mortgage servicing rights, net of economic hedges	$	4,652				$	6,509				$	6,547				$	9,297				$	2,552

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
	Mar. 31, 2021					Dec. 31, 2020					Sept. 30, 2020					June 30, 2020					Mar. 31, 2020
Interest revenue	$	298,239				$	319,020				$	294,659				$	306,384				$	348,937
Interest expense	17,819					21,790					22,909					28,280					87,577
Net interest revenue	280,420					297,230					271,750					278,104					261,360
Provision for credit losses	(25,000		)			(6,500		)			—					135,321					93,771
Net interest revenue after provision for credit losses	305,420					303,730					271,750					142,783					167,589
Other operating revenue:
Brokerage and trading revenue	20,782					39,506					69,526					62,022					50,779
Transaction card revenue	22,430					21,896					23,465					22,940					21,881
Fiduciary and asset management revenue	41,322					41,799					39,931					41,257					44,458
Deposit service charges and fees	24,209					24,343					24,286					22,046					26,130
Mortgage banking revenue	37,113					39,298					51,959					53,936					37,167
Other revenue	16,296					14,209					13,698					11,479					12,309
Total fees and commissions	162,152					181,051					222,865					213,680					192,724
Other gains (losses), net	(3,036		)			5,383					6,265					6,768					(10,741		)
Gain (loss) on derivatives, net	(27,650		)			(339		)			2,354					21,885					18,420
Gain (loss) on fair value option securities, net	(1,910		)			68					(754		)			(14,459		)			68,393
Change in fair value of mortgage servicing rights	33,874					6,276					3,441					(761		)			(88,480		)
Gain (loss) on available for sale securities, net	467					4,339					(12		)			5,580					3
Total other operating revenue	163,897					196,778					234,159					232,693					180,319
Other operating expense:
Personnel	173,010					176,198					179,860					176,235					156,181
Business promotion	2,154					3,728					2,633					1,935					6,215
Charitable contributions to BOKF Foundation	4,000					6,000					—					3,000					—
Professional fees and services	11,980					14,254					14,074					12,161					12,948
Net occupancy and equipment	26,662					27,875					28,111					30,675					26,061
Insurance	4,620					4,006					5,848					5,156					4,980
Data processing and communications	37,467					35,061					34,751					32,942					32,743
Printing, postage and supplies	3,440					3,805					3,482					3,502					4,272
Net losses (gains) and operating expenses of repossessed assets	(6,588		)			1,168					6,244					1,766					1,531
Amortization of intangible assets	4,807					5,088					5,071					5,190					5,094
Mortgage banking costs	13,943					14,765					15,803					15,598					10,545
Other expense	7,132					8,713					5,388					7,227					8,054
Total other operating expense	282,627					300,661					301,265					295,387					268,624
Net income before taxes	186,690					199,847					204,644					80,089					79,284
Federal and state income taxes	42,382					45,138					50,552					15,803					17,300
Net income	144,308					154,709					154,092					64,286					61,984
Net income (loss) attributable to non-controlling interests	(1,752		)			485					58					(407		)			(95		)
Net income attributable to BOK Financial Corporation shareholders	$	146,060				$	154,224				$	154,034				$	64,693				$	62,079
Average shares outstanding:
Basic	69,137,375					69,489,597					69,877,866					69,876,043					70,123,685
Diluted	69,141,710					69,493,050					69,879,290					69,877,467					70,130,166
Net income per share:
Basic	$	2.10				$	2.21				$	2.19				$	0.92				$	0.88
Diluted	$	2.10				$	2.21				$	2.19				$	0.92				$	0.88

LOANS TREND -- UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)

		Mar. 31, 2021				Dec. 31, 2020				Sept. 30, 2020				June 30, 2020				Mar. 31, 2020
Commercial:
Services		$	3,421,948			$	3,508,583			$	3,545,825			$	3,779,881			$	3,955,748
Energy		3,202,488				3,469,194				3,717,101				3,974,174				4,111,676
Healthcare		3,290,758				3,305,990				3,325,790				3,289,343				3,165,096
General business		2,742,590				2,793,768				2,976,990				3,115,112				3,563,455
Total commercial		12,657,784				13,077,535				13,565,706				14,158,510				14,795,975
Commercial real estate:
Multifamily		1,227,915				1,328,045				1,387,461				1,407,107				1,282,457
Office		1,094,060				1,085,257				1,099,563				973,995				962,004
Industrial		789,437				810,510				792,389				723,005				728,026
Retail		787,648				796,223				786,211				780,467				774,198
Residential construction and land development		119,079				119,394				121,258				136,911				138,958
Other commercial real estate		485,208				559,109				506,818				532,659				564,442
Total commercial real estate		4,503,347				4,698,538				4,693,700				4,554,144				4,450,085
Paycheck protection program		1,848,550				1,682,310				2,097,325				2,081,428				—
Loans to individuals:
Residential mortgage		1,797,478				1,863,003				1,849,144				1,813,442				1,844,555
Residential mortgages guaranteed by U.S. government agencies		420,051				408,687				384,247				322,269				197,889
Personal		1,306,637				1,277,447				1,213,178				1,226,097				1,175,466
Total loans to individuals		3,524,166				3,549,137				3,446,569				3,361,808				3,217,910
Total		$	22,533,847			$	23,007,520			$	23,803,300			$	24,155,890			$	22,463,970

LOANS MANAGED BY PRINCIPAL MARKET AREA -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands)

	Mar. 31, 2021				Dec. 31, 2020				Sept. 30, 2020				June 30, 2020				Mar. 31, 2020
Texas:
Commercial	$	5,748,345			$	5,926,534			$	6,135,471			$	6,359,206			$	6,350,690
Commercial real estate	1,511,714				1,519,217				1,523,226				1,413,108				1,296,266
Paycheck protection program	537,899				501,079				614,970				612,133				—
Loans to individuals	848,194				855,410				794,055				749,531				756,634
Total Texas	8,646,152				8,802,240				9,067,722				9,133,978				8,403,590
Oklahoma:
Commercial	2,975,477				3,144,782				3,332,244				3,489,259				3,886,086
Commercial real estate	597,840				597,733				608,448				596,419				593,473
Paycheck protection program	468,002				413,108				487,247				442,518				—
Loans to individuals	2,043,705				2,052,784				2,034,576				1,966,032				1,788,518
Total Oklahoma	6,085,024				6,208,407				6,462,515				6,494,228				6,268,077
Colorado:
Commercial	1,910,826				1,929,320				1,993,364				2,085,294				2,181,309
Commercial real estate	777,786				879,648				893,626				940,622				955,608
Paycheck protection program	436,540				377,111				494,910				488,279				—
Loans to individuals	264,759				264,295				257,832				265,359				268,674
Total Colorado	3,389,911				3,450,374				3,639,732				3,779,554				3,405,591
Arizona:
Commercial	1,207,089				1,219,072				1,218,769				1,346,037				1,396,582
Commercial real estate	667,766				726,111				702,291				698,818				714,161
Paycheck protection program	208,481				211,725				272,114				318,961				—
Loans to individuals	179,031				177,948				166,203				177,155				181,821
Total Arizona	2,262,367				2,334,856				2,359,377				2,540,971				2,292,564
Kansas/Missouri:
Commercial	421,974				455,914				493,606				481,162				556,255
Commercial real estate	395,590				366,821				352,663				314,926				310,799
Paycheck protection program	60,741				56,011				80,230				76,724				—
Loans to individuals	104,954				105,995				96,598				102,577				116,734
Total Kansas/Missouri	983,259				984,741				1,023,097				975,389				983,788
New Mexico:
Commercial	307,395				303,833				288,374				308,090				327,164
Commercial real estate	448,298				473,204				473,697				458,230				434,150
Paycheck protection program	124,059				109,881				133,244				128,058				—
Loans to individuals	70,491				75,665				79,890				83,470				87,110
Total New Mexico	950,243				962,583				975,205				977,848				848,424
Arkansas:
Commercial	86,678				98,080				103,878				89,462				97,889
Commercial real estate	104,353				135,804				139,749				132,021				145,628
Paycheck protection program	12,828				13,395				14,610				14,755				—
Loans to individuals	13,032				17,040				17,415				17,684				18,419
Total Arkansas	216,891				264,319				275,652				253,922				261,936
TOTAL BOK FINANCIAL	$	22,533,847			$	23,007,520			$	23,803,300			$	24,155,890			$	22,463,970

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, 2021				Dec. 31, 2020				Sept. 30, 2020				June 30, 2020				Mar. 31, 2020
Oklahoma:
Demand	$	4,822,895			$	4,328,619			$	4,493,691			$	4,378,559			$	3,669,558
Interest-bearing:
Transaction	12,827,914				12,603,603				12,586,401				11,438,489				9,955,697
Savings	487,862				420,996				401,062				387,557				329,631
Time	1,197,517				1,134,453				1,081,176				1,330,619				1,137,802
Total interest-bearing	14,513,293				14,159,052				14,068,639				13,156,665				11,423,130
Total Oklahoma	19,336,188				18,487,671				18,562,330				17,535,224				15,092,688
Texas:
Demand	3,593,510				3,450,468				3,152,393				3,070,955				2,767,399
Interest-bearing:
Transaction	4,257,390				3,800,482				3,482,603				3,358,090				2,874,362
Savings	154,406				139,173				136,787				128,892				115,039
Time	368,086				383,062				438,337				476,867				505,565
Total interest-bearing	4,779,882				4,322,717				4,057,727				3,963,849				3,494,966
Total Texas	8,373,392				7,773,185				7,210,120				7,034,804				6,262,365
Colorado:
Demand	2,115,354				2,168,404				2,057,603				2,096,075				1,579,764
Interest-bearing:
Transaction	2,100,135				2,170,485				1,861,763				1,816,604				1,759,384
Savings	73,446				69,384				68,230				67,477				58,000
Time	204,973				208,778				226,780				254,845				279,105
Total interest-bearing	2,378,554				2,448,647				2,156,773				2,138,926				2,096,489
Total Colorado	4,493,908				4,617,051				4,214,376				4,235,001				3,676,253
New Mexico:
Demand	1,131,713				941,074				964,908				965,877				750,052
Interest-bearing:
Transaction	736,923				733,007				713,418				752,565				563,891
Savings	103,591				91,646				85,463				80,242				67,553
Time	181,863				186,307				200,525				222,370				235,778
Total interest-bearing	1,022,377				1,010,960				999,406				1,055,177				867,222
Total New Mexico	2,154,090				1,952,034				1,964,314				2,021,054				1,617,274
Arizona:
Demand	915,439				905,201				928,671				985,757				665,396
Interest-bearing:
Transaction	835,795				768,220				771,319				780,500				729,603
Savings	13,235				12,174				11,498				15,669				8,832
Time	30,997				32,721				36,929				42,318				47,081
Total interest-bearing	880,027				813,115				819,746				838,487				785,516
Total Arizona	1,795,466				1,718,316				1,748,417				1,824,244				1,450,912
Kansas/Missouri:
Demand	478,370				426,738				405,360				427,795				318,985
Interest-bearing:
Transaction	991,510				960,237				616,797				526,635				537,552
Savings	18,686				16,286				15,520				15,033				12,888
Time	13,898				14,610				16,430				17,746				19,137
Total interest-bearing	1,024,094				991,133				648,747				559,414				569,577
Total Kansas/Missouri	1,502,464				1,417,871				1,054,107				987,209				888,562
Arkansas:
Demand	45,889				45,834				44,712				67,147				70,428
Interest-bearing:
Transaction	141,207				122,388				164,439				177,535				175,803
Savings	3,000				2,333				2,389				2,101				1,862
Time	7,022				7,197				7,796				7,995				8,005
Total interest-bearing	151,229				131,918				174,624				187,631				185,670
Total Arkansas	197,118				177,752				219,336				254,778				256,098
TOTAL BOK FINANCIAL	$	37,852,626			$	36,143,880			$	34,973,000			$	33,892,314			$	29,244,152

NET INTEREST MARGIN TREND -- UNAUDITED
BOK FINANCIAL CORPORATION

	Three Months Ended
	Mar. 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020			Mar. 31, 2020
TAX-EQUIVALENT ASSETS YIELDS
Interest-bearing cash and cash equivalents	0.10	%		0.10	%		0.12	%		0.07	%		1.33	%
Trading securities	2.06	%		2.02	%		1.92	%		2.46	%		2.89	%
Investment securities, net of allowance	4.88	%		4.88	%		4.85	%		4.77	%		4.73	%
Available for sale securities	1.84	%		1.98	%		2.11	%		2.29	%		2.48	%
Fair value option securities	1.95	%		2.27	%		1.92	%		2.00	%		2.67	%
Restricted equity securities	2.86	%		3.25	%		2.53	%		2.75	%		5.49	%
Residential mortgage loans held for sale	2.71	%		2.75	%		3.01	%		3.10	%		3.50	%
Loans	3.55	%		3.68	%		3.60	%		3.63	%		4.50	%
Allowance for loan losses
Loans, net of allowance	3.62	%		3.75	%		3.67	%		3.69	%		4.55	%
Total tax-equivalent yield on earning assets	2.78	%		2.92	%		3.04	%		3.12	%		3.73	%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.12	%		0.14	%		0.17	%		0.21	%		0.89	%
Savings	0.04	%		0.05	%		0.05	%		0.05	%		0.09	%
Time	0.70	%		0.89	%		1.13	%		1.36	%		1.83	%
Total interest-bearing deposits	0.17	%		0.19	%		0.26	%		0.34	%		0.98	%
Funds purchased and repurchase agreements	0.19	%		0.28	%		0.17	%		0.14	%		1.14	%
Other borrowings	0.39	%		0.42	%		0.43	%		0.56	%		1.66	%
Subordinated debt	4.92	%		4.87	%		4.89	%		5.16	%		5.30	%
Total cost of interest-bearing liabilities	0.24	%		0.28	%		0.31	%		0.37	%		1.19	%
Tax-equivalent net interest revenue spread	2.54	%		2.64	%		2.73	%		2.75	%		2.54	%
Effect of noninterest-bearing funding sources and other	0.08	%		0.08	%		0.08	%		0.08	%		0.26	%
Tax-equivalent net interest margin	2.62	%		2.72	%		2.81	%		2.83	%		2.80	%

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
	Mar. 31, 2021					Dec. 31, 2020					Sept. 30, 2020					June 30, 2020					Mar. 31, 2020
Nonperforming assets:
Nonaccruing loans:
Commercial:
Energy	$	101,800				$	125,059				$	126,816				$	162,989				$	96,448
Services	28,033					25,598					25,817					21,032					8,425
Healthcare	3,187					3,645					3,645					3,645					4,070
General business	14,053					12,857					13,675					14,333					9,681
Total commercial	147,073					167,159					169,953					201,999					118,624
Commercial real estate	27,243					27,246					12,952					13,956					8,545
Loans to individuals:
Permanent mortgage	32,884					32,228					31,599					33,098					30,721
Permanent mortgage guaranteed by U.S. government agencies	8,564					7,741					6,397					6,110					5,005
Personal	255					319					252					233					277
Total loans to individuals	41,703					40,288					38,248					39,441					36,003
Total nonaccruing loans	$	216,019				$	234,693				$	221,153				$	255,396				$	163,172
Accruing renegotiated loans guaranteed by U.S. government agencies	154,591					151,775					142,770					114,571					91,757
Real estate and other repossessed assets	70,911					90,526					52,847					35,330					36,744
Total nonperforming assets	$	441,521				$	476,994				$	416,770				$	405,297				$	291,673
Total nonperforming assets excluding those guaranteed by U.S. government agencies	$	278,366				$	317,478				$	267,603				$	284,616				$	194,911
Accruing loans 90 days past due1	$	395				$	10,369				$	7,684				$	10,992				$	3,706
Gross charge-offs	$	16,905				$	18,251				$	26,661				$	15,570				$	18,917
Recoveries	(2,437		)			(1,592		)			(4,232		)			(1,491		)			(1,696		)
Net charge-offs	$	14,468				$	16,659				$	22,429				$	14,079				$	17,221
Provision for loan losses	$	(21,770	)			$	(14,478	)			$	6,609				$	134,365				$	95,964
Provision for credit losses from off-balance sheet unfunded loan commitments	(4,044		)			8,952					(4,950		)			4,405					3,377
Provision for expected credit losses from mortgage banking activities	885					(923		)			(770		)			(3,575		)			(6,020		)
Provision for credit losses related to held-to maturity (investment) securities portfolio	(71		)			(51		)			(889		)			126					450
Total provision for credit losses	$	(25,000	)			$	(6,500	)			$	—				$	135,321				$	93,771
Allowance for loan losses to period end loans	1.56%					1.69%					1.76%					1.80%					1.40%
Allowance for loan losses to period end loans excluding PPP loans2	1.70%					1.82%					1.93%					1.97%					1.40%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans	1.71%					1.85%					1.88%					1.94%					1.53%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to period end loans excluding PPP loans2	1.86%					2.00%					2.06%					2.12%					1.53%
Nonperforming assets to period end loans and repossessed assets	1.95%					2.07%					1.75%					1.68%					1.30%
Net charge-offs (annualized) to average loans	0.25%					0.28%					0.37%					0.23%					0.31%
Net charge-offs (annualized) to average loans excluding PPP loans2	0.28%					0.31%					0.41%					0.25%					0.31%
Allowance for loan losses to nonaccruing loans1	169.87%					171.24%					195.47%					174.74%					199.35%
Combined allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments to nonaccruing loans1	185.72%					187.51%					208.49%					187.94%					217.38%

¹  Excludes residential mortgage loans guaranteed by agencies of the U.S. government.
²  Metric meaningful due to the unique characteristics and short-term nature of the PPP loans.

LINE OF BUSINESS HIGHLIGHTS -- UNAUDITED
BOK FINANCIAL CORPORATION
(in thousands, except ratios)

		Three Months Ended												1Q21 vs 4Q20									1Q21 vs 1Q20
		Mar. 31, 2021				Dec. 31, 2020				Mar. 31, 2020				$ change					% change				$ change					% change
Commercial Banking
Net interest revenue		$	130,005			$	142,026			$	151,407			$	(12,021	)			(8.5)%				$	(21,402	)			(14.1)%
Fees and commissions revenue		49,847				49,060				41,459				787					1.6%				8,388					20.2%
Combined net interest and fee revenue		179,852				191,086				192,866				(11,234		)			(5.9)%				(13,014		)			(6.7)%
Other operating expense		66,979				68,372				60,752				(1,393		)			(2.0)%				6,227					10.2%
Corporate expense allocations		12,734				5,348				8,905				7,386					138.1%				3,829					43.0%
Net income		69,673				74,941				74,975				(5,268		)			(7.0)%				(5,302		)			(7.1)%
Average assets		28,047,052				27,693,742				24,687,976				353,310					1.3%				3,359,076					13.6%
Average loans		17,522,520				18,100,333				18,812,015				(577,813		)			(3.2)%				(1,289,495		)			(6.9)%
Average deposits		16,130,168				15,373,673				11,907,386				756,495					4.9%				4,222,782					35.5%
Consumer Banking
Net interest revenue		$	20,974			$	30,672			$	43,932			$	(9,698	)			(31.6)%				$	(22,958	)			(52.3)%
Fees and commissions revenue		52,300				55,326				55,062				(3,026		)			(5.5)%				(2,762		)			(5.0)%
Combined net interest and fee revenue		73,274				85,998				98,994				(12,724		)			(14.8)%				(25,720		)			(26.0)%
Other operating expense		55,743				59,306				53,844				(3,563		)			(6.0)%				1,899					3.5%
Corporate expense allocations		11,487				10,428				10,389				1,059					10.2%				1,098					10.6%
Net income		6,849				14,768				23,701				(7,919		)			(53.6)%				(16,852		)			(71.1)%
Average assets		9,755,539				9,700,428				9,850,853				55,111					0.6%				(95,314		)			(1.0)%
Average loans		1,823,732				1,840,492				1,711,703				(16,760		)			(0.9)%				112,029					6.5%
Average deposits		8,082,443				7,993,971				6,869,481				88,472					1.1%				1,212,962					17.7%
Wealth Management
Net interest revenue		$	48,354			$	48,521			$	18,904			$	(167	)			(0.3)%				$	29,450				155.8%
Fees and commissions revenue		65,684				82,936				97,881				(17,252		)			(20.8)%				(32,197		)			(32.9)%
Combined net interest and fee revenue		114,038				131,457				116,785				(17,419		)			(13.3)%				(2,747		)			(2.4)%
Other operating expense		78,565				84,000				78,192				(5,435		)			(6.5)%				373					0.5%
Corporate expense allocations		9,887				9,465				8,265				422					4.5%				1,622					19.6%
Net income		19,382				28,435				22,573				(9,053		)			(31.8)%				(3,191		)			(14.1)%
Average assets		18,645,865				18,101,182				12,723,412				544,683					3.0%				5,922,453					46.5%
Average loans		1,917,973				1,839,695				1,705,735				78,278					4.3%				212,238					12.4%
Average deposits		9,706,295				9,589,814				7,623,986				116,481					1.2%				2,082,309					27.3%
Fiduciary assets		56,227,268				55,486,492				43,688,036				740,776					1.3%				12,539,232					28.7%
Assets under management or administration		91,956,188				91,592,247				75,783,829				363,941					0.4%				16,172,359					21.3%

Contact:

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