form8k_042710.htm

0000875357-10-000013.txt : 20100427 0000875357-10-000013.hdr.sgml : 20100427 20100427122419 ACCESSION NUMBER: 0000875357-10-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100427 DATE AS OF CHANGE: 20100427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOK FINANCIAL CORP ET AL CENTRAL INDEX KEY: 0000875357 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 731373454 STATE OF INCORPORATION: OK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19341 FILM NUMBER: 10772478 BUSINESS ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: PO BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 BUSINESS PHONE: 9185953025 MAIL ADDRESS: STREET 1: BANK OF OKLAHOMA TOWER STREET 2: P O BOX 2300 CITY: TULSA STATE: OK ZIP: 74192 8-K 1 form8k_042710.htm FORM 8-K Q1/10 042710 form8k_042710.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

April 27, 2010

BOK FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Oklahoma & #160; 000-19341 73-1373454

-------- & #160; --------- ----------

(State or other jurisdiction (Commission ; (IRS Employer

of incorporation) File Number) 0; Identification No.)

Bank of Oklahoma Tower, Boston Avenue at Second Street, Tulsa, Oklahoma 74172

(Address of principal executive offices)

Registrant's telephone number, including area code:

(918) 588-6000

_____________________N/A___________________________

(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.02. Results of Operations and Financial Condition.

On April 27, 2010, BOK Financial Corporation (“BOK Financial”) issued a press release announcing its financial results for the three months ended March 31, 2010 (“Press Release”). The full text of the Press Release is attached as Exhibit 99(a) to this report and is incorporated herein by reference. On April 27, 2010, in connection with issuance of the Press Release, BOK Financial released financial information related to the three months ended March 31, 2010 (“Financial Information”), which includes certain historical financial information relating to BOK Financial. The Financial Information is attached as Exhibit 99(b) to this report and is incorporated herein by reference.

ITEM 9.01. Financial Statements and Exhibits.

(c)

Exhibits

99(a)

Text of Press Release, dated April 27, 2010 titled “BOK Financial Reports Quarterly Earnings of $60 Million or $0.88 per Share – Credit Quality Indicators Maintain Positive Course”

99(b)

Financial Information for the Three Months Ended March 31, 2010

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

&# 160; BOK FINANCIAL CORPORATION

&# 160; By: /s/ Steven E. Nell

&# 160; Steven E. Nell

&# 160; Executive Vice President

&# 160; Chief Financial Officer

Date: April 27, 2010

EX-99.A 2 exhibit99a_042710.htm EXHIBIT 99 (A) TEXT OF PRESS RELEASE 042710 exhibit99a_042710.htm

Exhibit 99 (a)

BOK Financial Reports Quarterly Earnings of $60 Million or $0.88 per Share

Credit Quality Indicators Maintain Positive Course

TULSA, Okla. (Tuesday April 27, 2010) – BOK Financial Corporation reported net income for the first quarter of 2010 of $60.1 million or $0.88 per diluted share, up from $42.8 million or $0.63 per diluted share for the fourth quarter of 2009 and $55.0 million or $0.81 per diluted share for the first quarter of 2009. Net income for the first quarter of 2010 included a $6.5 million or $0.10 per share day-one gain from the purchase of the rights to service $4.2 billion of residential mortgage loans on favorable terms.

“BOK Financial is pleased to announce a strong start to 2010,” said President and CEO Stan Lybarger. “Our performance continues to be among the best performing banks $12 billion and larger in the country. Credit quality indicators continue to migrate in a positive direction. Total nonperforming assets are declining and net loans charged off have stabilized in a range between $34 million and $36 million per quarter for the past four quarters. We have modestly lowered our quarterly provision for credit losses in each of the past two quarters.”

Highlights of first quarter of 2010 included:

Net interest revenue totaled $182.6 million compared to $184.5 million for the fourth quarter of 2009. Net interest margin was 3.68% for the first quarter of 2010 and 3.64% for the fourth quarter of 2009. Average earning assets for the first quarter of 2010 decreased $23 million from the previous quarter.

·	Fees and commissions revenue totaled $115.3 million, down $634 thousand from the previous quarter. Deposit service charges decreased $2.7 million and mortgage banking revenue increased $1.5 million.

Operating expenses, excluding changes in the fair value of mortgage servicing rights, totaled $177.7 million, down $4.1 million from the prior quarter. Decreases in mortgage banking costs and most other operating expense categories were partially offset by higher personnel expenses and net losses and operating expenses on repossessed assets.

Combined reserves for credit losses totaled $314 million or 2.86% of outstanding loans at March 31, 2010, up from $306 million or 2.72% of outstanding loans at December 31, 2009. Net loans charged off and provision for credit losses were $34.5 million and $42.1 million, respectively, for the first quarter of 2010 compared to $35.0 million and $48.6 million, respectively for the fourth quarter of 2009.

Nonperforming assets totaled $483 million or 4.36% of outstanding loans and repossessed assets at March 31, 2010 compared to $484 million or 4.24% of outstanding loans and repossessed assets at December 31, 2009. Nonaccruing loans increased $4.2 million and real estate and other repossessed assets decreased $7.1 million during the first quarter.

Available for sale securities totaled $8.9 billion at March 31, 2010, up $32 million since December 31, 2009 due primarily to an increase in the fair value of portfolio. Other-than-temporary impairment charges on certain privately-issued residential mortgage backed securities reduced pre-tax income by $4.2 million during the first quarter of 2010 and $14.5 million during the fourth quarter of 2009.

·	Outstanding loan balances were $11.0 billion at March 31, 2010, down $308 million since December 31, 2009 largely due to reduced customer demand and normal repayment trends. Unfunded loan commitments totaled $4.9 billion at March 31, 2010 and $5.0 billion at December 31, 2009.

·	Total period end deposits increased $9.3 million during the first quarter of 2010 to $15.5 billion. Growth in interest-bearing transaction deposits was offset by a decrease in higher-costing time deposits and a seasonal decrease in demand deposits.

Tangible common equity ratio increased to 8.46% at March 31, 2010, from 7.99% at December 31, 2009, due to an increase in the fair value of the securities portfolio and retained earnings growth. The tangible common equity ratio is a non-GAAP measure of capital strength used by the Company and investors based on shareholders’ equity minus intangible assets and equity that does not benefit common shareholders, such as equity provided by the U.S. Treasury’s Asset Relief Program (“TARP”). We chose not to participate in the TARP Capital Purchase Program. The Company’s Tier 1 capital ratios as defined by banking regulations were 11.45% at March 31, 2010 and 10.86% at December 31, 2009.

The Company paid a cash dividend of $16.3 million or $0.24 per common share during the first quarter of 2010. Subject to approval on April 27, 2010, the board of directors expects to increase the quarterly cash dividend to $0.25 per common share payable on or about May 28, 2010 to shareholders of record as of May 14, 2010.

Net Interest Revenue

Net interest revenue totaled $182.6 million for the first quarter of 2010, down $1.9 million compared to the fourth quarter of 2009. Net interest margin increased over the previous quarter. However, average earning assets were lower.

Net interest margin was 3.68% for the first quarter of 2010 and 3.64% for the fourth quarter of 2009. The increase in net interest margin over the previous quarter resulted primarily from lower funding costs. The yield on average earning assets decreased 1 basis point. A 9 basis point decrease in the securities portfolio yield was largely offset by a 7 basis point increase in the loan portfolio yield. The cost of interest-bearing liabilities decreased 7 basis points, primarily due to a 9 basis point decrease in the cost of interest-bearing deposits.

Average earning assets decreased $23 million during the first quarter of 2010. Average securities increased $346 million, primarily from an increase in the fair value of securities during the first quarter of 2010 and purchases of residential mortgage-backed securities issued by U.S. government agencies during the fourth quarter of 2009. Average outstanding loans decreased $305 million during the quarter. Average balances of commercial, commercial real estate and consumer loans were lower compared to the previous quarter. In addition, average residential mortgage loans held for sale decreased $57 million.

Average deposits decreased $179 million during the first quarter of 2010 primarily due to a $230 million decrease in higher-costing average time deposits and a seasonal decrease of $181 million in average demand deposits, offset by growth in average interest-bearing transaction accounts of $229 million.

Fees and Commission Revenue

Fees and commissions revenue decreased to $115.3 million for the first quarter of 2010 compared to $115.9 million for the fourth quarter of 2009. Deposit service charges were down $2.7 million and mortgage banking revenue was up $1.5 million over the prior quarter. Overdraft fees decreased $2.6 million compared to the previous quarter due to a seasonal decrease in transaction volume. Overdraft volumes historically are lower in the first quarter of each year. Mortgage servicing revenue increased $2.9 million primarily as a result of mortgage servicing rights purchased during the first quarter of 2010. Revenue from mortgage loan sales was down $1.4 million compared to the previous quarter. Mortgage loans funded were $382 million in the first quarter of 2010 and $560 million in the fourt h quarter of 2009. All other sources of fees and commissions revenue remained largely unchanged.

Operating Expenses

Total operating expenses were $163.7 million for the first quarter of 2010, down $12.7 million compared to the previous quarter. Excluding changes in the fair value of mortgage servicing rights, operating expenses totaled $177.7 million, down $4.1 million compared to the fourth quarter of 2009. Most operating expense categories were down from the previous quarter. Losses on mortgage loans sold with recourse, which are included in mortgage banking costs, decreased $2.6 million from the previous quarter.

Reduced operating expenses were partially offset by higher personnel costs and repossessed asset expenses. Personnel costs increased $3.1 million primarily due to seasonal increases in payroll taxes. A decrease in salaries and wages from the previous quarter was offset by an increase in deferred compensation expense which is directly linked to the market value of Company stock and performance of other investments. Repossessed asset expenses were up $2.1 million. Net losses from sales and write-downs of repossessed property increased $2.6 million during the first quarter of 2010. Operating expenses of repossessed assets were down $439 thousand.

During the first quarter of 2010, the Company purchased the rights to service $4.2 billion of residential mortgage loans. The loans to be serviced are primarily concentrated in the New Mexico market and predominately held by Fannie Mae, Freddie Mac and Ginnie Mae. The cash purchase price for these servicing rights was approximately $32 million. The day-one fair value of the servicing rights purchased, based on independent analyses which were further supported by assumptions and models we regularly use to value our portfolio of servicing rights was approximately $11.8 million higher than the purchase price.

Credit Quality

Nonperforming assets decreased $1.0 million during the first quarter of 2010 to $483 million or 4.36% of outstanding loans and repossessed assets at March 31, 2010. Nonperforming assets at March 31, 2010 consisted of nonaccruing loans of $344 million, renegotiated loans of $18 million (including $14 million of residential mortgage loans guaranteed by U.S. government agencies) and $122 million of real estate and other repossessed assets. Nonaccruing loans increased $4.2 million and repossessed assets decreased $7.1 million during the quarter.

Nonaccruing loans totaled $344 million or 3.13% of outstanding loans at March 31, 2010 compared to $339 million or 3.01% of outstanding loans at December 31, 2009. During the first quarter of 2010, $73 million of new nonaccruing loans were identified offset by $33 million in payments received, $32 million in charge-offs and $6 million in foreclosures and repossessions. In addition, $4 million of nonaccruing loans returned to accrual status during the first quarter of 2010.

Nonaccruing commercial loans totaled $84 million or 1.40% of total commercial loans at March 31, 2010. At March 31, 2010, nonaccruing commercial loans are primarily composed of $36 million or 2.04% of total services sector loans, $17 million or 0.91% of total energy sector loans and $11 million or 1.36% of total healthcare sector loans. Nonaccruing commercial loans decreased $17 million since December 31, 2009 primarily related to manufacturing, energy, and wholesale / retail sector loans. Newly identified nonaccruing loans commercial loans totaled $20 million, offset by $25 million in payments and $10 million in charge-offs during the first quarter of 2010.

Nonaccruing commercial real estate loans totaled $220 million or 8.99% of outstanding commercial real estate loans at March 31, 2010. Nonaccruing commercial real estate loans attributed to our various markets included $65 million or 32% of total commercial real estate loans in Arizona, $57 million or 25% of total commercial real estate loans in Colorado, $39 million or 4.91% of total commercial real estate loans in Oklahoma and $34 million or 4.39% of total commercial real estate loans in Texas. Nonaccruing commercial real estate loans continue to be largely concentrated in land development and residential construction loans. At March 31, 2010, $141 million or 23% of all land development and construction loans was nonaccruing. Total nonaccruing commercial real estate loans increased $15 million since December 31, 2009. Newly identified nonaccruing commercial real estate loans totaled $53 million, partially offset by $21 million of charge-offs, $8 million of cash payments received and $5 million of foreclosures.

Nonaccruing residential mortgage loans totaled $36 million or 2.02% of outstanding residential mortgage loans at March 31, 2010. The distribution of nonaccruing residential mortgage loans among our various markets included $14 million or 1.11% of residential mortgage loans in Oklahoma, $10 million or 3.16% of residential mortgage loans in Texas and $9 million or 13.48% of residential mortgage loans in Arizona. Nonaccruing residential mortgage loans increased $6.3 million compared to December 31, 2009. Residential mortgage loans past due 30 to 89 days totaled $24 million, down $1.1 million from December 31, 2009.

The combined allowance for credit losses totaled $314 million or 2.86% of outstanding loans and 91% of non-accruing loans at March 31, 2010. The allowance for loan losses was $300 million and the reserve for off-balance sheet credit losses was $14 million. Approximately $125 million of impaired loans, which consist primarily of nonaccruing commercial and commercial real estate loans, have been charged-down to the amount management expects to recover and accordingly have no reserve for loan loss attributed to them. The remaining $186 million of impaired loans have $12 million of the reserve for loan losses attributed to them. During the first quarter of 2010, the Company recognized a $42.1 million provision for credit losses. Net losses charged against the allowance for loa n losses totaled $34.5 million or 1.23% annualized of average outstanding loans.

Real estate and other repossessed assets totaled $122 million at March 31, 2010 consisting of $62 million of 1-4 family residential properties and residential land development properties, $34 million of developed commercial real estate properties, $13 million of equity interest received in partial satisfaction of debts, $7 million of undeveloped land, $4 million of equipment and $1 million of automobiles. The distribution of real estate owned and other repossessed assets among various markets included $47 million in Arizona, $24 million in Texas, $21 million in Oklahoma, $11 million in Colorado, $7 million in New Mexico, $6 million in Arkansas and $5 million in Kansas/Missouri. Real estate and other repossessed assets decreased by $7 million during the first quarter due to additions of $6 million offset by $7 million in sales and $6 million in write-downs based on updated appraisals.

The Company also has off-balance sheet obligations related to certain community development residential mortgage loans sold to U.S. government agencies with recourse. These mortgage loans were underwritten to standards approved by the agencies, including full documentation and originated under programs available only for owner-occupied properties. The outstanding principal balance of these loans totaled $324 million at March 31, 2010, down from $331 million at December 31, 2009. The loans are primarily to borrowers in our primary market areas, including $228 million in Oklahoma, $35 million in Arkansas, $18 million in New Mexico, $16 million in Kansas/Missouri and $15 million in Texas. At March 31, 2010, approximately 5% of these loans are non-performing and 4% were past due 30 to 89 days. A separate reserve for credit risk of $14 million is available for losses on these loans.

Securities and Derivatives

The fair value of available for sale securities totaled $8.9 billion at March 31, 2010, up $32 million since December 31, 2009. The available for sale portfolio consisted primarily of residential mortgage-backed securities, including $7.9 billion fully backed by U.S. government agencies and $766 million privately issued by publicly owned financial institutions. The portfolio does not hold any securities backed by sub-prime mortgage loans, collateralized debt obligations or collateralized loan obligations.

The portfolio of available for sale securities had net unrealized gains of $108 million at March 31, 2010 compared to net unrealized gains of $13 million at December 31, 2009. Net unrealized gains on residential mortgage-backed securities issued by U.S. government agencies increased $66 million during the first quarter to $230 million at March 31, 2010. Net unrealized losses on privately-issued residential mortgage-backed securities decreased $25 million to $144 million at March 31, 2010.

The amortized cost of privately-issued residential mortgage-backed securities totaled $910 million at March 31, 2010, down $52 million since December 31, 2009 due primarily to cash received. Approximately $593 million of the privately issued residential mortgage-backed securities were rated below investment grade by at least one nationally-recognized rating agency. The aggregate unrealized losses on privately-issued residential mortgage-backed securities rated below investment grade totaled $120 million at March 31, 2010. Aggregate unrealized losses on these same below investment grade securities were $135 million at December 31, 2009. The Company recognized a $4.2 million other-than-temporary impairment charge against earnings in the first quarter related to these securities due to further decl ines in projected cash flows as a result of worsening trends in delinquencies and foreclosures.

The Company added $70 million to its investment (held-to-maturity) securities portfolio during the first quarter of 2010 comprised primarily of qualifying school construction bonds. These bonds were issued with the Company’s assistance by several school districts in our Texas markets under a program authorized by the U.S. Treasury Department. Interest on these bonds is payable through federal income tax credits.

Net realized gains on securities totaled $4.5 million for the first quarter of 2010, compared with $7.3 million for the fourth quarter of 2009 and $20.1 million for the first quarter of 2009.

	Three Months Ended
	March 31, 2010	Dec. 31, 2009	March 31, 2009

Net gain on available for sale securities	$ 4,076	$ 11,717	$ 22,226
Gain (loss) on mortgage hedge securities	448	(4,440)	(2,118)
Net gain on securities	$ 4,524	$ 7,277	$ 20,108

Gain (loss) on change in fair value of
mortgage servicing rights	$ 2,100 (1)	$ 5,285	$ 1,955

(1) Excluding $11.8 million day-one gain on the purchase of mortgage servicing rights.

The Company recognized $4.1 million of gains on the sale of $286 million of available for sale securities in the first quarter of 2010 and $11.7 million of gains on the sale of $765 million of available for sale securities in the fourth quarter of 2009. Securities were sold either to mitigate extension exposure from rising interest rates or because they had reached their expected maximum potential total return.

The Company has a portfolio of derivative contracts held for customer risk management programs and internal interest rate risk management programs. At March 31, 2010, the fair value of all asset contracts totaled $325 million, net of cash margin held by the Company. The largest net amount due from a single counterparty, a subsidiary of an international energy company, to these contracts at March 31 was $89 million. Letters of credit issued by independent financial institutions offset $68 million of this amount.

Loans, Deposits and Capital

Outstanding loans at March 31, 2010 were $11.0 billion, down $308 million from December 31, 2009. Loan balances were lower across most sectors of the loan portfolio and markets.

Outstanding commercial loans totaled $6.0 billion at March 31, 2010, down $193 million at December 31, 2009. The decrease in outstanding balances is due to reduced customer demand in response to current economic conditions and normal repayment trends. Outstanding commercial loans decreased across all sectors of the portfolio including a $66 million decrease in services sector loans, a $49 million decrease in wholesale/retail sector loans and a $31 million decrease in other commercial and industrial loans. Total unfunded commercial loan commitments decreased $12 million to $4.3 billion. Unfunded energy loan commitments increased $10 million to $1.9 billion. All other unfunded commercial loan commitments decreased $22 million.

Outstanding commercial real estate loans decreased $48 million compared to the prior quarter, primarily due to a $46 million decrease in other real estate loans, a $40 million decrease in residential construction and land development loans and a $14 million decrease in loan secured by retail facilities. Loans secured by industrial properties increased $34 million and loans secured by multifamily properties increased $17 million. Unfunded commercial real estate loan commitments decreased $42 million to $156 million as existing commitments continue to mature.

Residential mortgage loans increased $4.1 million from the prior quarter primarily due to a $3.8 million increase in home equity loans. Consumer loans decreased $72 million compared to the prior quarter primarily due to a $58 million decrease in indirect automobile loans related to the previously announced decision to curtail that business during the first quarter of 2009 in favor of a customer-focused direct approach to consumer lending.

Total deposits increased $9.3 million during the first quarter and totaled $15.5 billion at March 31, 2010. Interest-bearing deposits increased $163 million, offset by a $114 million decrease in time deposit balances and a $54 million seasonal decrease in demand deposit balances. The Company continued to decrease brokered deposits and other higher cost certificates of deposit. Among the lines of business, commercial and consumer deposits increased $85 million and $52 million, respectively, offset by a $41 million decrease in wealth management deposits.

The Company and each of its subsidiary banks exceeded the regulatory definition of well capitalized at March 31, 2010. The Company’s Tier 1 and total capital ratios were 11.45% and 15.09%, respectively, at March 31, 2010. The Company’s Tier 1 and total capital ratios were 10.86% and 14.43%, respectively, at December 31, 2009. In addition the Company’s tangible common equity ratio, a non-GAAP measure, was 8.46% at March 31, 2010 and 7.99% at December 31, 2009.

About BOK Financial Corporation

BOK Financial is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the TransFund electronic funds network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF. For more information, visit www.bokf.com.

The Company will continue to evaluate critical assumptions and estimates, such as the adequacy of the allowance for credit losses and asset impairment as of March 31, 2010 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,” 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 involve judgments as to future events and are inherently forward-looking statements. Assessments that BOK Financial’s acquisitions and other growth endeavors will be profit able 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 (1) the ability to fully realize expected cost savings from mergers within the expected time frames, (2) the ability of other companies on which BOK Financial relies to provide goods and services in a timely and accurate manner, (3) changes in interest rates and interest rate relationships, (4) demand for products and services, (5) the degree of competition b y traditional and nontraditional competitors, (6) changes in banking regulations, tax laws, prices, levies and assessments, (7) the impact of technological advances and (8) trends in consumer 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.

EX-99.B 3 exhibit99b_042710.htm EXHIBIT 99 (B) Q1/10 FINANCIALS 042710 exhibit99b_042710.htm

BALANCE SHEETS			Exhibit 99 (b)
BOK FINANCIAL CORPORATION
(In thousands)
		Period Ended
	March 31,	December 31,	March 31,
	2010	2009	2009
	(Unaudited)		(Unaudited)
ASSETS
Cash and due from banks	$ 902,575	$ 875,250	$ 686,976
Trading securities	115,641	65,354	128,179
Funds sold and resell agreements	29,410	45,966	27,197
Securities:
Available for sale	8,904,395	8,872,023	6,991,803
Investment	309,910	240,405	251,848
Mortgage trading securities	427,196	285,950	454,493
Total securities	9,641,501	9,398,378	7,698,144
Residential mortgage loans held for sale	178,362	217,826	245,791
Loans:
Commercial	6,014,739	6,207,840	7,101,530
Commercial real estate	2,443,848	2,491,434	2,732,081
Residential mortgage	1,797,711	1,793,622	1,819,950
Consumer	714,926	786,802	986,355
Total loans	10,971,224	11,279,698	12,639,916
Less reserve for loan losses	(299,717)	(292,095)	(251,002)
Loans, net of reserve	10,671,507	10,987,603	12,388,914
Premises and equipment, net	279,152	280,260	281,300
Accrued revenue receivable	107,300	108,822	104,205
Goodwill	335,601	335,601	335,829
Intangible assets, net	17,315	18,638	23,694
Mortgage servicing rights, net	119,066	73,824	50,246
Real estate and other repossessed assets	121,933	129,034	61,383
Bankers' acceptances	2,945	3,869	9,316
Derivative contracts	325,364	343,782	551,316
Cash surrender value of bank-owned life insurance	248,927	247,357	239,348
Other assets	405,377	385,267	501,604
TOTAL ASSETS	$ 23,501,976	$ 23,516,831	$ 23,333,442



LIABILITIES AND EQUITY
Deposits:
Demand	$ 3,599,981	$ 3,653,844	$ 3,050,896
Interest-bearing transaction	8,093,725	7,930,439	6,627,222
Savings	179,554	165,952	168,644
Time	3,654,256	3,767,993	5,423,659
Total deposits	15,527,516	15,518,228	15,270,421
Funds purchased and
repurchase agreements	2,638,263	2,471,743	2,217,081
Other borrowings	1,909,934	2,133,357	2,276,430
Subordinated debentures	398,578	398,539	398,443
Accrued interest, taxes, and expense	117,179	111,880	146,111
Bankers' acceptances	2,945	3,869	9,316
Due on unsettled securities trades	103,186	212,335	311,133
Derivative contracts	311,685	308,360	640,275
Other liabilities	159,973	133,146	118,181
TOTAL LIABILITIES	21,169,259	21,291,457	21,387,391
Shareholders' equity:
Capital, surplus and retained earnings	2,264,786	2,216,553	2,111,823
Accumulated other comprehensive income (loss)	47,657	(10,740)	(180,523)
TOTAL SHAREHOLDERS' EQUITY	2,312,443	2,205,813	1,931,300
Non-controlling interest	20,274	19,561	14,751
TOTAL EQUITY	2,332,717	2,225,374	1,946,051
TOTAL LIABILITIES AND EQUITY	$ 23,501,976	$ 23,516,831	$ 23,333,442



AVERAGE BALANCE SHEETS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

ASSETS
Trading securities	$ 70,979	$ 68,027	$ 64,763	$ 112,960	$ 111,962
Funds sold and resell agreements	32,363	30,358	67,032	29,277	50,701
Securities:
Available for sale	8,884,678	8,583,032	7,782,254	7,242,931	6,645,086
Investment	256,003	238,479	235,967	271,068	238,562
Mortgage trading securities	366,845	340,456	267,591	365,434	453,304
Total securities	9,507,526	9,161,967	8,285,812	7,879,433	7,336,952
Residential mortgage loans held for sale	137,404	194,760	176,403	286,077	201,135
Loans:
Commercial	6,132,889	6,325,580	6,521,438	6,901,057	7,182,481
Commercial real estate	2,492,535	2,538,737	2,621,176	2,684,020	2,762,789
Residential mortgage	1,833,602	1,827,339	1,873,457	1,884,023	1,841,006
Consumer	728,294	801,040	871,347	933,950	998,489
Total loans	11,187,320	11,492,696	11,887,418	12,403,050	12,784,765
Less allowance for loan losses	(309,194)	(298,157)	(281,289)	(273,335)	(252,734)
Total loans, net	10,878,126	11,194,539	11,606,129	12,129,715	12,532,031
Total earning assets	20,626,398	20,649,651	20,200,139	20,437,462	20,232,781
Cash and due from banks	1,089,971	1,095,087	828,965	638,791	661,433
Cash surrender value of bank-owned life insurance	247,415	245,460	242,715	240,199	237,805
Derivative contracts	300,865	352,143	401,887	493,448	476,091
Other assets	1,448,098	1,353,393	1,376,828	1,264,131	1,335,259
TOTAL ASSETS	$ 23,712,747	$ 23,695,734	$ 23,050,534	$ 23,074,031	$ 22,943,369

LIABILITIES AND EQUITY
Deposits:
Demand	$ 3,485,504	$ 3,666,663	$ 3,392,578	$ 3,183,338	$ 2,864,751
Interest-bearing transaction	7,963,752	7,734,678	7,162,477	6,854,003	6,610,805
Savings	170,990	167,572	167,677	167,813	159,537
Time	3,772,295	4,002,337	4,404,854	5,123,947	5,215,091
Total deposits	15,392,541	15,571,250	15,127,586	15,329,101	14,850,184
Funds purchased and
repurchase agreements	2,575,286	2,173,476	2,284,985	2,316,990	2,562,066
Other borrowings	2,249,470	2,380,938	2,173,103	1,951,699	2,158,963
Subordinated debentures	398,559	398,522	398,484	398,456	398,425
Derivative contracts	276,696	318,809	392,277	536,232	641,974
Other liabilities	521,567	605,994	539,129	534,889	416,242
TOTAL LIABILITIES	21,414,119	21,448,989	20,915,564	21,067,367	21,027,854
Total equity	2,298,628	2,246,745	2,134,970	2,006,664	1,915,515
TOTAL LIABILITIES AND EQUITY	$ 23,712,747	$ 23,695,734	$ 23,050,534	$ 23,074,031	$ 22,943,369
	-	-	-	-	-

STATEMENTS OF EARNINGS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except per share data)
	Quarter Ended
	March 31,
	2010	2009


Interest revenue	$ 219,370	$ 233,227
Interest expense	36,796	63,382
Net interest revenue	182,574	169,845
Provision for credit losses	42,100	45,040
Net interest revenue after
provision for credit losses	140,474	124,805

Other operating revenue
Brokerage and trading revenue	21,035	24,699
Transaction card revenue	25,687	25,428
Trust fees and commissions	16,320	16,510
Deposit service charges and fees	26,792	27,405
Mortgage banking revenue	14,871	18,498
Bank-owned life insurance	2,972	2,317
Margin asset fees	36	67
Other revenue	7,602	6,583
Total fees and commissions	115,315	121,507
Gain (loss) on other assets	(1,390)	143
Gain (loss) on derivatives, net	(341)	(1,664)
Gain (loss) on securities, net	4,524	20,108
Total other-than-temporary impairment losses	(9,708)	(54,368)
Portion of loss recognized in other comprehensive income	(5,483)	(39,366)
Net impairment losses recognized in earnings	(4,225)	(15,002)
Total other operating revenue	113,883	125,092

Other operating expense
Personnel	96,824	92,627
Business promotion	3,978	4,428
Professional fees and services	6,401	6,512
Net occupancy and equipment	15,511	16,258
Insurance	6,533	5,638
Data processing and communications	20,309	19,306
Printing, postage and supplies	3,322	4,571
Net (gains) losses and operating expenses
of repossessed assets	7,220	1,806
Amortization of intangible assets	1,324	1,686
Mortgage banking costs	9,267	7,467
Change in fair value of mortgage servicing rights	(13,932)	(1,955)
Other expense	6,975	7,450
Total other operating expense	163,732	165,794

Net income before taxes	90,625	84,103
Federal and state income taxes	30,283	28,838

Net income before non-controlling interest	60,342	55,265
Net income (loss) attributable to non-controlling interest	209	233

Net income attributable to BOK Financial Corporation	$ 60,133	$ 55,032

Average shares outstanding:
Basic	67,592,315	67,315,986
Diluted	67,790,049	67,387,102

Net income per share:
Basic	$ 0.88	$ 0.81
Diluted	$ 0.88	$ 0.81





FINANCIAL HIGHLIGHTS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and share data)
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

Capital:
Period-end shareholders' equity	$ 2,312,443	$ 2,205,813	$ 2,185,013	$ 2,050,572	$ 1,931,300
Risk weighted assets	$ 16,787,566	$ 17,275,808	$ 17,515,147	$ 18,338,540	$ 18,355,862
Risk-based capital ratios:
Tier 1	11.45%	10.86%	10.56%	9.86%	9.66%
Total capital	15.09%	14.43%	14.10%	13.34%	13.08%
Leverage ratio	8.25%	8.05%	8.16%	7.97%	7.85%
Tangible common equity ratio (A)	8.46%	7.99%	7.78%	7.55%	6.84%
Tier 1 common equity ratio (B)	11.33%	10.75%	10.45%	9.77%	9.58%

Common stock:
Book value per share	$ 33.99	$ 32.53	$ 32.27	$ 30.30	$ 28.57

Market value per share:
High	$ 53.11	$ 47.91	$ 48.10	$ 43.02	$ 40.71
Low	$ 45.43	$ 41.87	$ 34.81	$ 34.46	$ 22.95

Cash dividends paid	$ 16,304	$ 16,201	$ 16,280	$ 16,184	$ 15,027
Dividend payout ratio	27.11%	37.88%	32.14%	31.05%	27.31%
Shares outstanding, net	68,042,918	67,802,807	67,707,547	67,674,442	67,589,045
Stock buy-back program:
Shares repurchased	-	-	-	-	-
Amount	$ -	$ -	$ -	$ -	$ -
Average price per share	$ -	$ -	$ -	$ -	$ -

Performance ratios (quarter annualized):
Return on average assets	1.03%	0.72%	0.87%	0.91%	0.97%
Return on average equity	10.61%	7.55%	9.41%	10.42%	11.65%
Net interest margin	3.68%	3.64%	3.63%	3.55%	3.47%
Efficiency ratio	59.11%	60.02%	58.09%	61.02%	57.10%

Other data:
Gain (loss) on economic hedge of mortgage servicing rights	$ (211)	$ (4,440)	$ 3,560	$ (10,199)	$ (2,118)
Trust assets	$ 30,739,254	$ 30,385,365	$ 29,945,585	$ 29,288,041	$ 28,700,791
Mortgage servicing portfolio	$ 10,895,182	$ 6,603,132	$ 6,339,764	$ 6,082,501	$ 5,515,893
Mortgage loan fundings during the quarter	$ 382,028	$ 560,254	$ 536,173	$ 1,023,272	$ 708,561
Mortgage loan refinances to total fundings	55.00%	47.00%	49.00%	71.00%	73.51%
Tax equivalent adjustment	$ 2,416	$ 2,196	$ 1,982	$ 1,791	$ 2,105
Unrealized gain (loss) on available for sale securities	$ 107,754	$ 13,226	$ 30,898	$ (128,492)	$ (261,856)

(A) Tangible common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Total shareholders' equity	$ 2,312,443	$ 2,205,813	$ 2,185,013	$ 2,050,572	$ 1,931,300
Less: intangible assets, net	(352,916)	(354,239)	(356,152)	(357,838)	(359,523)
Tangible common equity	$ 1,959,527	$ 1,851,574	$ 1,828,861	$ 1,692,734	$ 1,571,777

Total assets	$ 23,501,976	$ 23,516,831	$ 23,876,841	$ 22,768,319	$ 23,333,442
Less: intangible assets, net	(352,916)	(354,239)	(356,152)	(357,838)	(359,523)
	$ 23,149,060	$ 23,162,592	$ 23,520,689	$ 22,410,481	$ 22,973,919

Tangible common equity ratio	8.46%	7.99%	7.78%	7.55%	6.84%

(B) Tier 1 common equity ratio is a non-GAAP measure.
Reconciliation to a GAAP financial measure follows:
Tier 1 capital	$ 1,922,783	$ 1,876,778	$ 1,849,254	$ 1,807,705	$ 1,773,576
Less: non-controlling interest	(20,274)	(19,561)	(18,981)	(15,590)	(14,751)
Tier 1 common equity	$ 1,902,509	$ 1,857,217	$ 1,830,273	$ 1,792,115	$ 1,758,825

Risk weighted assets	$ 16,787,566	$ 17,275,808	$ 17,515,147	$ 18,338,540	$ 18,355,862

Tier 1 common equity ratio	11.33%	10.75%	10.45%	9.77%	9.58%

QUARTERLY EARNINGS TRENDS - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands, except ratio and per share data)
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

Interest revenue	$ 219,370	$ 224,411	$ 226,246	$ 230,685	$ 233,227
Interest expense	36,796	39,933	45,785	55,105	63,382
Net interest revenue	182,574	184,478	180,461	175,580	169,845
Provision for credit losses	42,100	48,620	55,120	47,120	45,040
Net interest revenue after
provision for credit losses	140,474	135,858	125,341	128,460	124,805

Other operating revenue
Brokerage and trading revenue	21,035	20,240	24,944	21,794	24,699
Transaction card revenue	25,687	26,292	26,264	27,533	25,428
Trust fees and commissions	16,320	16,492	16,315	16,860	16,510
Deposit service charges and fees	26,792	29,501	30,464	28,421	27,405
Mortgage banking revenue	14,871	13,403	13,197	19,882	18,498
Bank-owned life insurance	2,972	2,870	2,634	2,418	2,317
Margin asset fees	36	50	51	68	67
Other revenue	7,602	7,101	6,087	6,124	6,583
Total fees and commissions	115,315	115,949	119,956	123,100	121,507
Gain (loss) on other assets	(1,390)	(205)	3,223	973	143
Gain (loss) on derivatives, net	(341)	(370)	(294)	(1,037)	(1,664)
Gain (loss) on securities, net	4,524	7,277	12,266	6,471	20,108
Total other-than-temporary impairment losses	(9,708)	(67,390)	(6,133)	(1,263)	(54,368)
Portion of loss recognized in other comprehensive income	(5,483)	(52,902)	(2,752)	279	(39,366)
Net impairment losses recognized in earnings	(4,225)	(14,488)	(3,381)	(1,542)	(15,002)
Total other operating revenue	113,883	108,163	131,770	127,965	125,092

Other operating expense
Personnel	96,824	93,687	98,012	96,191	92,627
Business promotion	3,978	5,758	4,827	4,569	4,428
Professional fees and services	6,401	8,813	7,555	7,363	6,512
Net occupancy and equipment	15,511	17,600	15,884	15,973	16,258
Insurance	6,533	6,412	6,092	5,898	5,638
FDIC special assessment	-	-	-	11,773	-
Data processing and communications	20,309	21,121	20,413	20,452	19,306
Printing, postage and supplies	3,322	3,601	3,716	4,072	4,571
Net (gains) losses and operating expenses
of repossessed assets	7,220	5,101	3,497	996	1,806
Amortization of intangible assets	1,324	1,912	1,686	1,686	1,686
Mortgage banking costs	9,267	11,436	8,065	9,336	7,467
Change in fair value of mortgage servicing rights	(13,932)	(5,285)	2,981	(7,865)	(1,955)
Other expense	6,975	6,281	6,004	5,326	7,450
Total other operating expense	163,732	176,437	178,732	175,770	165,794

Net income before taxes	90,625	67,584	78,379	80,655	84,103
Federal and state income taxes	30,283	24,780	24,772	28,315	28,838

Net income before non-controlling interest	60,342	42,804	53,607	52,340	55,265
Net income (loss) attributable to non-controlling interest	209	33	2,947	225	233

Net income attributable to BOK Financial Corporation	$ 60,133	$ 42,771	$ 50,660	$ 52,115	$ 55,032

Average shares outstanding:
Basic	67,592,315	67,446,326	67,392,059	67,344,577	67,315,986
Diluted	67,790,049	67,600,344	67,513,700	67,448,029	67,387,102

Net income per share:
Basic	$ 0.88	$ 0.63	$ 0.75	$ 0.77	$ 0.81
Diluted	$ 0.88	$ 0.63	$ 0.75	$ 0.77	$ 0.81


LOANS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

Oklahoma:
Commercial	$ 2,616,086	$ 2,649,252	$ 2,738,217	$ 2,918,478	$ 3,119,362
Commercial real estate	787,543	820,578	815,362	855,742	881,620
Residential mortgage	1,235,788	1,228,822	1,245,917	1,249,104	1,234,417
Consumer	404,570	451,829	483,369	521,431	562,021
Total Oklahoma	5,043,987	5,150,481	5,282,865	5,544,755	5,797,420

Texas:
Commercial	1,935,819	2,017,081	2,075,379	2,182,756	2,277,186
Commercial real estate	769,682	735,338	734,742	741,199	816,830
Residential mortgage	307,643	313,113	335,797	345,780	337,044
Consumer	160,449	170,062	188,374	196,752	214,134
Total Texas	3,173,593	3,235,594	3,334,292	3,466,487	3,645,194

New Mexico:
Commercial	326,203	341,802	344,910	380,378	393,180
Commercial real estate	298,197	305,061	344,988	313,190	315,511
Residential mortgage	85,629	86,415	88,271	90,944	99,805
Consumer	16,713	17,473	18,176	18,826	19,900
Total New Mexico	726,742	750,751	796,345	803,338	828,396

Arkansas:
Commercial	86,566	103,443	99,559	97,676	99,955
Commercial real estate	129,125	132,436	128,984	133,026	133,227
Residential mortgage	17,071	16,849	19,128	19,015	17,145
Consumer	110,123	124,265	136,461	152,620	168,971
Total Arkansas	342,885	376,993	384,132	402,337	419,298

Colorado:
Commercial	495,916	545,724	569,549	595,858	675,223
Commercial real estate	228,998	239,970	249,879	269,923	267,035
Residential mortgage	68,049	66,504	68,667	58,557	59,120
Consumer	17,991	17,362	18,272	14,097	14,599
Total Colorado	810,954	869,560	906,367	938,435	1,015,977

Arizona:
Commercial	209,019	199,143	219,330	215,540	211,953
Commercial real estate	202,192	227,249	257,169	262,607	285,841
Residential mortgage	68,015	65,047	57,304	58,265	61,605
Consumer	3,068	3,461	4,826	3,229	5,261
Total Arizona	482,294	494,900	538,629	539,641	564,660

Kansas:
Commercial	345,130	351,395	323,112	325,165	324,671
Commercial real estate	28,111	30,802	29,211	36,006	32,017
Residential mortgage	15,516	16,872	14,740	12,310	10,814
Consumer	2,012	2,350	1,871	1,454	1,469
Total Kansas	390,769	401,419	368,934	374,935	368,971

TOTAL BOK FINANCIAL	$ 10,971,224	$ 11,279,698	$ 11,611,564	$ 12,069,928	$ 12,639,916

DEPOSITS BY PRINCIPAL MARKET AREA - UNAUDITED
BOK FINANCIAL CORPORATION
(In thousands)
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

Oklahoma:
Demand	$ 2,062,084	$ 2,068,908	$ 1,895,980	$ 1,451,057	$ 1,651,111
Interest-bearing:
Transaction	5,237,983	5,134,902	4,566,058	4,374,089	4,089,838
Savings	101,708	93,006	93,443	94,048	95,827
Time	1,360,756	1,397,240	1,765,980	2,033,312	2,876,313
Total interest-bearing	6,700,447	6,625,148	6,425,481	6,501,449	7,061,978
Total Oklahoma	8,762,531	8,694,056	8,321,461	7,952,506	8,713,089

Texas:
Demand	1,068,656	1,108,401	1,138,794	1,002,266	1,021,424
Interest-bearing:
Transaction	1,675,759	1,748,319	1,716,460	1,660,642	1,527,399
Savings	37,175	35,129	35,724	33,992	33,867
Time	1,043,813	1,100,602	1,007,579	1,035,919	1,054,632
Total interest-bearing	2,756,747	2,884,050	2,759,763	2,730,553	2,615,898
Total Texas	3,825,403	3,992,451	3,898,557	3,732,819	3,637,322

New Mexico:
Demand	222,685	209,090	216,330	175,033	180,308
Interest-bearing:
Transaction	480,189	444,247	424,528	434,498	401,000
Savings	20,036	17,563	18,039	18,255	17,858
Time	495,243	510,202	511,507	542,388	561,300
Total interest-bearing	995,468	972,012	954,074	995,141	980,158
Total New Mexico	1,218,153	1,181,102	1,170,404	1,170,174	1,160,466

Arkansas:
Demand	17,599	21,526	19,077	17,261	16,503
Interest-bearing:
Transaction	61,398	50,879	85,061	73,972	63,924
Savings	1,266	1,346	1,131	1,031	1,100
Time	105,794	101,839	137,109	162,505	150,015
Total interest-bearing	168,458	154,064	223,301	237,508	215,039
Total Arkansas	186,057	175,590	242,378	254,769	231,542

Colorado:
Demand	136,048	146,929	121,555	113,895	111,048
Interest-bearing:
Transaction	456,508	448,846	477,418	445,521	466,276
Savings	18,118	17,802	18,518	18,144	18,905
Time	509,410	525,844	520,906	579,709	584,971
Total interest-bearing	984,036	992,492	1,016,842	1,043,374	1,070,152
Total Colorado	1,120,084	1,139,421	1,138,397	1,157,269	1,181,200

Arizona:
Demand	61,183	68,651	54,046	55,975	54,362
Interest-bearing:
Transaction	81,851	81,909	95,242	89,842	66,809
Savings	1,105	958	971	1,282	970
Time	64,592	60,768	56,809	59,775	54,923
Total interest-bearing	147,548	143,635	153,022	150,899	122,702
Total Arizona	208,731	212,286	207,068	206,874	177,064

Kansas / Missouri:
Demand	31,726	30,339	16,406	9,692	16,140
Interest-bearing:
Transaction	100,037	21,337	15,682	12,907	11,976
Savings	146	148	70	54	117
Time	74,648	71,498	84,923	158,325	141,505
Total interest-bearing	174,831	92,983	100,675	171,286	153,598
Total Kansas / Missouri	206,557	123,322	117,081	180,978	169,738

TOTAL BOK FINANCIAL	$ 15,527,516	$ 15,518,228	$ 15,095,346	$ 14,655,389	$ 15,270,421

NET INTEREST MARGIN TREND - UNAUDITED
BOK FINANCIAL CORPORATION
			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009
TAX-EQUIVALENT ASSETS YIELDS
Trading securities	4.53%	5.41%	4.72%	3.49%	3.69%
Funds sold and resell agreements	0.10%	0.21%	0.11%	0.19%	0.24%
Securities:
Taxable	3.73%	3.83%	4.18%	4.50%	4.90%
Tax-exempt	5.28%	5.16%	5.03%	5.69%	6.64%
Total securities	3.78%	3.87%	4.21%	4.54%	4.96%
Residential mortgage loans held for sale	5.16%	4.71%	4.94%	4.51%	4.79%
Loans	4.81%	4.74%	4.67%	4.64%	4.56%
Less reserve for loan losses	-	-	-	-	-
Loans, net of reserve	4.95%	4.86%	4.78%	4.75%	4.65%
Total tax-equivalent yield on earning assets	4.41%	4.42%	4.54%	4.65%	4.75%
COST OF INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest-bearing transaction	0.52%	0.57%	0.65%	0.78%	0.95%
Savings	0.42%	0.47%	0.48%	0.25%	0.28%
Time	1.86%	1.95%	2.20%	2.48%	2.83%
Total interest-bearing deposits	0.94%	1.03%	1.23%	1.49%	1.76%
Funds purchased and repurchase agreements	0.32%	0.30%	0.32%	0.35%	0.45%
Other borrowings	0.29%	0.29%	0.38%	0.49%	0.58%
Subordinated debt	5.66%	5.52%	5.53%	5.67%	5.67%
Total cost of interest-bearing liabilities	0.87%	0.94%	1.09%	1.31%	1.50%
Tax-equivalent net interest revenue spread	3.54%	3.48%	3.45%	3.34%	3.25%
Effect of noninterest-bearing funding sources and other	0.14%	0.16%	0.18%	0.21%	0.22%
Tax-equivalent net interest margin	3.68%	3.64%	3.63%	3.55%	3.47%

CREDIT QUALITY INDICATORS
BOK FINANCIAL CORPORATION
(In thousands, except ratios)			Quarter Ended
	March 31,	December 31,	September 30,	June 30,	March 31,
	2010	2009	2009	2009	2009

Nonperforming assets:
Nonaccruing loans (B):
Commercial	$ 84,491	$ 101,384	$ 128,266	$ 126,510	$ 128,501
Commercial real estate	219,639	204,924	212,418	189,586	175,487
Residential mortgage	36,281	29,989	38,220	35,860	34,182
Consumer	3,164	3,058	3,897	1,037	1,065
Total nonaccruing loans	$ 343,575	$ 339,355	$ 382,801	$ 352,993	$ 339,235
Renegotiated loans (A)	17,763	15,906	17,426	17,479	13,623
Real estate and other repossessed assets	121,933	129,034	89,507	75,243	61,383
Total nonperforming assets	$ 483,271	$ 484,295	$ 489,734	$ 445,715	$ 414,241

Nonaccruing loans by principal market (B):
Oklahoma	$ 89,512	$ 83,176	$ 112,610	$ 108,490	$ 105,536
Texas	61,839	66,892	65,911	51,582	55,225
New Mexico	23,572	26,693	35,541	29,640	18,046
Arkansas	15,206	13,820	5,911	3,888	4,078
Colorado	66,990	60,082	50,432	45,794	38,567
Arizona	85,808	84,559	108,161	106,076	111,772
Kansas	648	4,133	4,235	7,523	6,011
Total nonaccruing loans	$ 343,575	$ 339,355	$ 382,801	$ 352,993	$ 339,235
	-	-	-	-	-
Nonaccruing loans by loan portfolio sector (B):
Commercial:
Energy	$ 17,182	$ 22,692	$ 48,992	$ 53,842	$ 49,618
Manufacturing	4,834	15,765	17,429	16,975	18,248
Wholesale / retail	6,629	12,057	7,623	10,983	8,650
Agriculture	65	65	98	105	115
Services	35,535	30,926	30,094	24,713	30,226
Healthcare	10,538	13,103	13,758	14,222	14,288
Other	9,708	6,776	10,272	5,670	7,356
Total commercial	84,491	101,384	128,266	126,510	128,501
Commercial real estate:
Land development and construction	140,508	109,779	113,868	97,425	99,922
Retail	14,843	26,236	22,254	17,474	9,893
Office	26,660	25,861	31,406	27,685	23,305
Multifamily	15,725	26,540	28,223	27,827	27,198
Industrial	-	279	527	527	575
Other commercial real estate	21,903	16,229	16,140	18,648	14,594
Total commercial real estate	219,639	204,924	212,418	189,586	175,487
Residential mortgage:
Permanent mortgage	34,134	28,314	36,431	34,149	32,848
Home equity	2,147	1,675	1,789	1,711	1,334
Total residential mortgage	36,281	29,989	38,220	35,860	34,182
Consumer	3,164	3,058	3,897	1,037	1,065
Total nonaccruing loans	$ 343,575	$ 339,355	$ 382,801	$ 352,993	$ 339,235
	-	-	-	-	-
Performing loans 90 days past due	$ 12,915	$ 10,308	$ 24,238	$ 32,479	$ 46,123

Gross charge-offs	$ 40,328	$ 37,974	$ 38,581	$ 37,409	$ 34,535
Recoveries	5,850	2,950	2,594	2,472	2,664
Net charge-offs	$ 34,478	$ 35,024	$ 35,987	$ 34,937	$ 31,871

Provision for credit losses	$ 42,100	$ 48,620	$ 55,120	$ 47,120	$ 45,040

Reserve for loan losses to period end loans	2.73%	2.59%	2.42%	2.18%	1.99%
Combined reserves for credit losses to period end loans	2.86%	2.72%	2.52%	2.27%	2.07%
Nonperforming assets to period end loans
and repossessed assets	4.36%	4.24%	4.19%	3.67%	3.26%
Net charge-offs (annualized) to average loans	1.23%	1.22%	1.21%	1.13%	1.00%
Reserve for loan losses to nonaccruing loans	87.23%	86.07%	73.38%	74.59%	73.99%
Combined reserves for credit losses to nonaccruing loans	91.42%	90.31%	76.51%	77.55%	77.11%

(A) includes residential mortgage loans guaranteed by	$ 14,083	$ 12,799	$ 11,234	$ 11,079	$ 10,514
agencies of the U.S. government. These loans
have been modified to extend payment terms and/or
reduce interest rates to current market.
(B) includes loans subject to First United Bank sellers escrow	$ 4,281	$ 4,311	$ 4,173	$ 8,305	$ 11,287